Stifel sees improved outlook for dry bulk market, upgrades Diana Shipping and Safe Bulkers

Safe Bulkers

01/02/2021 13:33

** Stifel upgrades Diana Shipping In  DSX.N  and Safe
Bulkers Inc  SB.F  to "buy" from "hold" on improved outlook for
dry bulk market
    ** Brokerage believes demand for underlying commodities such
as iron ore, steel, and aluminum began to accelerate late last
year, and should continue to improve through 2022
    ** Brokerage estimates overall dry bulk demand growth of at
least 3.8% in 2021, says supply/demand fundamentals should drive
a favourable environment for the ship operators
    ** While inflation may or may not materialize, we believe
the fact that new ship deliveries are low and demand for
commodities are high at very least creates an easy hurdle for
the dry bulk sector to leap - Stifel
    ** Stifel also raises PT on DSX to $3.50 from $2.25, and to
$3 for SB from $1.5
    ** In premarket trading, shares of DSX up 10.6% at $2.41
while that of SB up 12.6% at $1.96, respectively

 (Reporting by Aniruddha Chakrabarty)
 ((aniruddha.c.thomsonreuters.com@reuters.net))