SB - Pangaea Logistics Solutions: Post-Earnings Selloff Provides Buying Opportunity
2024-03-15 14:44:32 ET
Summary
- Shares of leading dry bulk shipper Pangaea Logistics Solutions, Ltd. experienced heavy selling pressure after the company reported fourth quarter results well below market expectations.
- Increased customer demand resulted in the requirement to charter-in additional vessels just at a time when the Baltic Dry Bulk Index marked new 18-month highs.
- Despite these headwinds, Pangaea generated approximately $24 million in cash flow from operations and finished the year with $99 million in cash and $268 million in debt obligations.
- Based on preliminary Q1 fixtures, I would expect the company to beat analyst expectations in the first quarter.
- Based on my expectations for the healthy dry bulk charter rate environment to persist and the company to outperform analyst projections in Q1, I am raising my rating on the shares from "Hold" to "Speculative Buy" with a short-term price target of $7.50.
Note:
I have covered Pangaea Logistics Solutions, Ltd. ( PANL ) previously, so investors should view this as an update to my earlier articles on the company. ...
Pangaea Logistics Solutions: Post-Earnings Selloff Provides Buying Opportunity