Higher container rates positive for upcoming charters. Charters on four feeders and one intermediate expire before yearend 2021 and the renewal prospects remain strong. We estimate that the feeders (Spetses/Diamantis/Corfu/Evridiki) will secure longer term work at charter rates in the $20.0k-$25.0k/day range. At the same time, charter rates for the Oakland, an intermediate, appear to have moved up into the more than $40.0k/day range. Increasing 2021 EBITDA estimate to $44.1 million based on TCE rates of $17.4k/day, up from $40.6 million based on TCE rates of $16.7k/day. Forward cover and about 89% of 2021 available days of 5,000 are booked at average rates of $15.2k/day and Contracted EBITDA is ~$32.8 million. We are estimating that the open days are filled at an average TCE rate slightly above $20.0k/day.Increasing 2022 EBITDA estimate to $69.8 million based on TCE rates of $22.3k/day, up from $56.0 million based on TCE rates of $20.3k/day. Visibility into next year is the highest in more than a decade. While the forward cover of 49% is not as high as 2021, the average rate is ~25% higher and contracted EBITDA approximates $28.8 million. Similar to 2021, we are estimating an average TCE rate above $20.0k/day for the open days.Capital structure moves should be positive this year. Stronger and more visible operating cash flow should improve the capital structure and enhance financial flexibility. Debt of $0.9 million was prepaid in May, the convertible preferred stock is now well in the money, and the capital structure could be net debt free by yearend 2022. With improved visibility and a stronger capital structure, a regular dividend or special dividend could be considered by yearend 2021.Maintain Outperform rating and increase price target to $25.40/share from $21.50/share. Our container market outlook remains favorable and new charters with longer terms at higher rates have created solid forward cash flow visibility. Even though the stock is up 317% this year and 44% in June, we believe that the current valuation is 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 >>