GRIN - Research - Grindrod Shipping (GRIN): Dry Bulker with Tanker Upside - Launching Coverage with Outperform

Launching coverage with Outperform rating and 12-month price target of $11.55/share. A high quality asset base, consistent TCE rate outperformance and simplified corporate structure are positives. GRIN has dropped more than 60% since the June 2018 NASDAQ listing and the weak stock price performance creates a compelling risk/reward profile. The current valuation of 5.4x 2020 EBITDA is attractive and our 12-month price target of $11.55/share is based on 6.8x our 2020 EBITDA estimate of $65 million.Dry bulk fleet profile is attractive due to high modern ECO ownership. Tankers add diversification and upside potential. Newer, modern assets are more fuel efficient and attractive to charterers, especially with the recent changes in fuel specifications triggered by IMO2020.Read More >>