Tate Sullivan, an analyst from Maxim Group, reiterated the Buy rating on Performance Shipping (PSHG – Research Report). The associated price target is $4.00.
Tate Sullivan has given his Buy rating to Performance Shipping due to a combination of factors. One of the key reasons is the company’s appealing valuation, with the stock trading at 0.3x 2Q23 adjusted book value per share. The rating is also influenced by Sullivan’s projections, which anticipate the company generating free cash flow starting in 2023 and potentially buying a new tanker. Despite reducing 3Q23 forecasts for PSHG, Sullivan increases the company’s 4Q23 forecasts due to recent tanker shipping time charter equivalent (TCE) rates and tanker supply-side dynamics.
In addition to these, Sullivan notices a trend of shipping companies purchasing shares in other shipping companies, a move that is believed to be driven by these companies’ valuations being well below net asset value, long lead times for new ship delivery and limited opportunities for acquiring secondhand ships at discounts. Notably, shipowner George Economou recently filed 13D ownership statements for OceanPal and PSHG shares. Given these factors, along with Sullivan’s forecast of a $4.00 price target, representing 0.6x 2Q24 adjusted book value per share, the Buy rating is provided for PSHG stock.
PSHG’s price has also changed dramatically for the past six months – from $0.881 to $2.150, which is a 144.04% increase.
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Performance Shipping (PSHG) Company Description:
Performance Shipping, Inc. engages in the provision of shipping transportation services through its ownership of containerships. Its vessels are employed primarily on time charters with liner companies carrying containerized cargo along worldwide shipping routes. Its fleet include the following vessels: Sagitta, CEntaurus, New Jersey, Pamina, Domingo, Puelo, Pucon, March, Great, Hamburg, and Rotterdam. The company was founded on January 7, 2010 and is headquartered in Athens, Greece.
Read More on PSHG:
- Performance Shipping Inc. Announces Initiation of Analyst Coverage by Maxim Group
- Netflix upgraded, Olaplex downgraded: Wall Street’s top analyst calls
- Maxim starts Performance Shipping at Buy as pure-play on Aframax tankers
- Performance Shipping initiated with a Buy at Maxim
- Performance Shipping Inc. Announces Completion of US$2 Million Share Buyback Plan and Initiates New US$2 Million Share Buyback Plan
