- Initiating coverage on Diana Shipping, a leading Greece-based dry bulk shipper with decent financials employing a rather conservative chartering approach.
- In contrast to peers, the company is focusing on medium- and long-term charters resulting in improved earnings visibility and better resilience during market downturns.
- On the flipside, this strategy leaves the company disadvantaged in today's strong dry bulk market, but earnings are expected to catch up over time as weak legacy charters expire.
- Investors should consider taking advantage of the recent selloff in shipping stocks and the company's current self-tender offer to initiate a position in the shares at an almost 50% discount to estimated net asset value.
- With dry bulk market conditions likely to remain strong, I would expect the company to start paying a sizeable dividend in early 2022 at the latest point. Get long Diana Shipping with a medium-term price target of $6.
For further details see:
Diana Shipping - Use The Recent Selloff To Participate In The $4.50 Tender Offer