Another charter at a higher-than-expected rate announced. Upcoming charter reset should also be positive. A new charter has been signed on the Joanna for 18-21 months at a rate of $16.8k/day, above the current rate of $8.1k/day. In addition, the Oakland is working on an indexed rate through June 2021 and the last reset will occur late next week. If the rate was reset today, the rate would move to ~$34k/day from the current ~$24k rate.Increasing 2021 EBITDA estimate to reflect new charter and upcoming reset on the indexed rate. To reflect the positive impact of the Joanna charter and upside potential from upcoming charters, we are moving 2021 EBITDA to $34.9 million based on TCE rates of $15.7k/day from $31.1 million based on TCE rates of $14.8k/day.Solid contract cover and several other contracts set to renew at higher rates. We estimate 79% of 2021 available days are booked at average rates of ~$14.6k/day, versus our previous estimate of 75% booked at an average rates of ~$13.3k/day. Marking remaining available days to market represents upside in the $4.0 million range, or close to ~11%.Container market off to good start. Favorable market thesis intact. More container charters have been signed with longer terms and at higher TCE rates, and the first quarter was better-than-expected. Despite several new orders, the order book and supply growth remain historically lower the next two years due to shipyard restrictions, regulatory uncertainty and declining capital availability, while demand should rebound on the back of unprecedented global stimulus and solid secular trends. As a result, demand growth could outstrip supply growth this year.Maintain Outperform rating and price target of $15.75/share to reflect strong container market and favorable charter agreements. The container market was soft entering 2H2020, but container TCE rates firmed and have moved to multi-year highs. With TCE rates moving well above 4Q2020 averages and longer-term contracts more common, the stock responded positively and gained 334% since 3Q2020. Despite strong YTD stock price performance of more than 100%, we believe that the upside potential remains attractive and the risk/reward profile is favorable. Potential catalysts include charters at higher rates and debt/preferred stock refinancings.Read More >>