Analyst Tate Sullivan from Maxim Group maintained a Buy rating on Performance Shipping and keeping the price target at $4.00.
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Tate Sullivan has given his Buy rating due to a combination of factors influencing Performance Shipping’s outlook. Despite the company’s third-quarter results falling short of expectations in terms of shipping rates and earnings per share, the demand for tanker ships has been on the rise. This increase in demand is driven by heightened seaborne transportation of crude oil and refined products from key regions like the Middle East and the U.S., alongside geopolitical factors such as sanctions affecting supply.
Furthermore, Sullivan anticipates that Performance Shipping will utilize its operational cash flow to support its fleet expansion through new ship acquisitions and deliveries. The stock is currently trading at a significant discount to its book value, which presents a potential upside as reflected in the maintained price target. These elements, combined with the expectation of improved revenue due to higher shipping rates, underpin the Buy rating on Performance Shipping’s stock.
Sullivan covers the Industrials sector, focusing on stocks such as Seanergy Maritime, ABM Industries, and Performance Shipping. According to TipRanks, Sullivan has an average return of -0.7% and a 45.56% success rate on recommended stocks.