Eagle Bulk Shipping "buy," target price raised - update

05/22/08 - Lazard Capital Markets

NEW YORK, May 22 (newratings.com) - Analyst Urs Dur of Lazard Capital reiterates his "buy" rating on Eagle Bulk Shipping Inc (EGLE), while raising his estimates for the company. The target price has been raised from $40 to $41.

In a research note published this morning, the analyst mentions that the company has acquired two Supramax dry bulk ships for $146 million. The acquisitions are likely to lend support to Eagle Bulk Shipping’s top- and bottom-line, in view of the robust fundamentals of the charter market, the analyst adds. Rise in the demand for the company’s fleet is expected to exceed supply in the forthcoming 12 months, Lazard Capital says. The EPS estimates for 2008 and 2009 have been raised from $1.96 to $2.12 and from $2.61 to $3.11, respectively.