Drewry Financial Sticks to Its Buy Rating for Scorpio Bulkers (SALT)

By Austin Angelo

In a report issued on August 10, Victoria Saraglis from Drewry Financial maintained a Buy rating on Scorpio Bulkers (NYSE: SALT), with a price target of $11. The company’s shares closed on Friday at $6.80, close to its 52-week low of $6.50.

Saraglis wrote:

“We retain our Attractive rating on the share with a fair value of USD 11 per share, and we believe at the current market price, the share is trading at a considerable discount to its computed NAV per share. The key near-term risk revolves around weak demand of thermal coal from Europe and Asia.”

According to TipRanks.com, Saraglis is a 1-star analyst with an average return of -1.9% and a 40.0% success rate. Saraglis covers the Services sector, focusing on stocks such as Golden Ocean Group Limited, Star Bulk Carriers, and Navigator Holdings.

Currently, the analyst consensus on Scorpio Bulkers is a Strong Buy with an average price target of $11.38, which is a 67.4% upside from current levels. In a report issued on July 31, Seaport Global also reiterated a Buy rating on the stock with a $12.50 price target.

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Based on Scorpio Bulkers’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $800K. In comparison, last year the company had a GAAP net loss of $13.42 million.

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Scorpio Bulkers, Inc. engages in the provision of ocean transportation of dry bulk cargoes worldwide through the ownership and operation of dry bulk carrier vessels. It operates through the following segments: Ultramax Vessels, Kamsarmax Vessels, and Capesize Vessels.