PXS - Pyxis Tankers: Upgrading To 'Strong Buy' On Discounted Valuation And Surprise Share Buyback Authorization
2023-05-17 04:11:02 ET
Summary
- Company reports mixed Q1 results with profitability boosted by a large one-time gain from the recent sale of the product tanker "Pyxis Malou".
- On the flip side, average time charter equivalent ("TCE") rate of $23,508 came in much weaker than expected, partially due to the scheduled drydocking of the product tanker "Pyxis Karteria".
- Company surprisingly announced a new $2 million share repurchase authorization. At prevailing share prices, close to 5% of outstanding shares could be bought back.
- Investors looking for a combination of yield and exposure to potential common share price appreciation should consider the company's Series A 7.75% Convertible Preferred Shares.
- With the stock trading at an almost 60% discount to NAV and considering the surprise repurchase authorization, I am upgrading Pyxis Tankers' common shares to "Strong Buy".
For further details see:
Pyxis Tankers: Upgrading To 'Strong Buy' On Discounted Valuation And Surprise Share Buyback Authorization