Star Bulk Strengthens Position With Share Buyback: Analyst Highlights Healthy Dry Bulk Market Outlook
Portfolio Pulse from Shivani Kumaresan
Star Bulk Carriers Corp (SBLK) has entered into a Repurchase Agreement with OCM XL Holdings, LP (Oaktree Shareholders) to buy back 10 million of its shares at $18.50 per share. This will reduce Oaktree's holding from 25.2% to 17.2% and its Board representation from three seats to two. The deal is funded primarily with proceeds from prior ship sales. Jefferies analyst Omar Nokta reiterated a Buy rating on SBLK with a price target of $22 and raised 4Q23 and 2024 EPS estimates.
September 22, 2023 | 6:21 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Star Bulk's share buyback deal with Oaktree Shareholders is expected to be accretive on both EPS and NAV. Jefferies analyst reiterates Buy rating on SBLK with a price target of $22.
The share buyback deal will reduce the number of outstanding shares, which is expected to increase the earnings per share (EPS) and net asset value (NAV) per share. This is a positive development for the company and is likely to have a positive impact on the stock price. The Buy rating and price target of $22 by Jefferies analyst further supports this view.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100