Jefferies Remains Bullish on Safe Bulkers (SB)

Safe Bulkers Inc. (NYSE:SB) is one of the best shipping and container stocks to invest in now. Analyst Omar Nokta from Jefferies maintained a Buy rating on Safe Bulkers Inc. (NYSE:SB) on May 20, setting a $5.00 price target.

The analyst based the rating on the company’s strategic positioning and financial resilience, reporting strong Q1 results that exceeded expectations despite challenging market conditions, with spot rates dwindling below break-even levels.

Nokta reasoned that this was primarily because of Safe Bulkers Inc.’s (NYSE:SB) contracted cash flow from period and fixed charters, as that offered stability to reach an average time charter equivalent rate that surpassed expectations.

The firm also reasoned that Safe Bulkers Inc.’s (NYSE:SB) free cash flow has allowed it to declare a stable dividend. It expects the delivery of a new Kamsarmax vessel and modest recovery in dry bulk rates to further bolster the company’s outlook.

Safe Bulkers Inc. (NYSE:SB) provides international marine drybulk transportation services. It transports bulk cargoes across global shipping routes, primarily including grain, coal, and iron ores.

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Disclosure: None. This article is originally published at Insider Monkey.