In a report released yesterday, Tate Sullivan from Maxim Group reiterated a Buy rating on Globus Maritime (GLBS – Research Report), with a price target of $4.00.
Tate Sullivan has given his Buy rating due to a combination of factors relating to Globus Maritime’s operational performance and market positioning. Despite reporting lower than expected revenue for the first quarter of 2024, Globus Maritime experienced a smaller net loss per share, attributed to a reduction in expenses. Additionally, the company is projected to increase its debt strategically in order to facilitate the delivery of new vessels, which are anticipated to command higher rates due to limited supply growth in the sector. The analyst emphasizes the positive fundamentals within the shipping sector, including restricted supply growth due to shipyard backlogs and increased demand for dry bulk commodities.
Sullivan maintains a Buy rating and a price target of $4.00, highlighting that the company’s current shares are trading at a significantly lower multiple than the projected book value per share for the first quarter of 2025. The favorable valuation is supported by the expected delivery of new ships in the latter half of 2024 and 2026, which positions Globus Maritime to benefit from the anticipated higher charter rates. Furthermore, the sale of an older vessel at a gain and the modest increase in time charter equivalent rates year-over-year reinforce the positive outlook, despite a slight downward revision in revenue and earnings estimates for the second quarter of 2024. Sullivan’s analysis indicates confidence in the company’s future performance and valuation.
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Globus Maritime (GLBS) Company Description:
Globus Maritime Ltd. is a dry bulk shipping holding company. It engages in the provision of marine transportation services. The company operates through its subsidiaries and it owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes on a worldwide basis. Globus Maritime was founded by Athanasios Georgios Feidakis and Georgios Karageorgiou on July 26, 2006 and is headquartered in Athens, Greece.
