Adjusted 1Q2021 EBITDA of $5.7 million in line with expectations with higher TCE rates offsetting higher opex. Reported adjusted EBITDA was $5.6 million. TCE revenue of $14.7 million increased from $12.5 million in 4Q2020 due to a $1,637 move up in TCE rates to $12,134/day from $10,497/day, higher shipping days of 1,219 versus 1,190 in 4Q2020 and lower idle days of 41 versus 138 in 4Q2020.Fine-tuning 2021 EBITDA estimate to reflect to reflect 1Q2021 results and updated forward cover. We are moving 2021 EBITDA to $40.6 million based on TCE rates of $16.7k/day from $37.5 million based on TCE rates of $16.2k/day. Visibility is very high with 89% of available 2021 days booked at $15.2k/day due to longer charters signed at higher TCE rates.Solid contract cover and upside potential with other contracts are set to renew at higher rates. The recent Hydra charter at $20.0k/day for at least 23 months increased the forward cover and about 89% of 2021 available days of 5,000 are booked at average rates of $15.2k/day, or above our previous estimate of 84% of 2021 available days are booked at average rates of ~$14.6k/day. Since the container market has been strong, there is still solid upside potential versus our current 2021 EBITDA estimate. Marking up all 562 of the remaining open days by $5.0k/day versus our estimates represents upside in the $3.0 million range, or close to ~7% of our revised 2021 EBITDA estimate.Introducing 2022 EBITDA estimate of $56.0 million based on TCE rates of $20.3k/day to reflect firm container market and updated forward cover. Due to recent charters signed for longer terms, visibility into next year is the highest in more than a decade, if not ever. Currently, forward cover is good with 49% of available 2022 days booked at an average rate of $19.6k. While the forward cover is not as high as 2021, the average TCE rate is about 25% higher.Upgrading to Outperform from Market Perform rating with a price target of $21.50/share. The container market outlook looks favorable and new charters with longer terms at higher rates create solid forward visibility. Even though the stock is up 169% this year, the stock has stalled recently and is up only 1% in May. Combined with higher EBITDA estimates, we believe that the current valuation is attractive and the risk/reward profile warrants a positive rating. Read More >>