Spetses feeder secures term charter at higher TCE rate. After the market closed yesterday, a new charter on the Spetses, a 2007-built 1,740 TEU feeder, was announced. The charter runs through August 2024 (a minimum of 36 months and maximum of 40 months) at a TCE rate of $29.5k/day.No change to 2021-2 EBITDA estimates, but positive bias intact. We will adjust our EBITDA estimates when 2Q2021 operating results are out over the next week or so. Four feeders (Diamantis/Corfu/Evridiki/Astoria) and one intermediate (Oakland) are available for charter over the next six months, and recent charters on the Oakland intermediate and Spetses feeder set a positive tone.Current 2021 EBITDA estimate stays at $46.9 million based on TCE rates of $18.0k/day. The Spetses charter expands forward cover to 94% at TCE rates of $16.5k/day from 91% at TCE rates of $16.2k/day. Since the container market has been stronger than expected and charters have become longer, only 4% of 3Q2021 available days and 21% of 4Q2021 available days are open.Current 2022 EBITDA estimate stays at $69.5 million based on TCE rates of $22.3k/day. The Spetses charter expands forward cover to 62% at TCE rates of $19.8k/day from 55% at TCE rates of $19.6k/day. Upward bias intact due to upcoming charters on the four feeders and one intermediate.Maintain Outperform rating and price target of $30.00/share. Our container market outlook stays favorable and numerous longer term charters at higher rates create forward cash flow visibility. Even though the stock was up 325% in 1H2021, the stock has dropped ~19% in 3Q2021. We believe that the current valuation remains attractive and the risk/reward profile warrants a positive rating. Moreover, improving operating results and declining financial leverage should allow shareholder friendly moves, like paying a regular and/or special dividend. Read More >>