On Thursday, B.Riley increased the stock price target for Okeanis Eco Tankers Corp (NYSE:ECO) to $44, up from the previous $38, while sustaining a Buy rating on the stock. The firm highlighted the company's performance amidst a challenging comparison with the previous year, noting a robust rate environment for the tanker operator.
Okeanis Eco Tankers reported first-quarter 2024 time charter equivalent (TCE) revenue of $81.0 million, a slight decrease from the $88.5 million recorded in the same period last year. Daily TCE per vessel for the quarter stood at $65,602, down from $70,783 year-over-year.
The company's adjusted EBITDA came in at $65.2 million, compared to $74.4 million a year ago, and adjusted earnings per share (EPS) were $1.23, down from $1.60 in the prior year.
Despite these year-over-year declines, B.Riley remains optimistic about Okeanis' prospects. The company's fleet primarily operates in the spot market, which is expected to benefit from a favorable macroeconomic environment, characterized by steady global demand for crude oil and a tightening of the global crude tanker fleet capacity.
Okeanis has also been investing in energy-saving technologies to enhance the efficiency and environmental performance of its vessels. According to B.Riley, these investments, along with a stable to rising rate environment, are expected to bolster the company's financials.
The analyst firm pointed out that Okeanis has low capital expenditure requirements outside of potential asset purchases, and it generates strong cash flow that allows for the allocation of excess cash to dividends.
Based on the company's solid operating metrics and fundamentals, which are producing better-than-expected results, B.Riley has raised its estimates for Okeanis Eco Tankers and increased the stock price target to $44. The firm maintains its Buy rating, reflecting confidence in the company's ability to capitalize on current market conditions.
InvestingPro Insights
Recent data from InvestingPro highlights several key financial metrics that underscore the optimism surrounding Okeanis Eco Tankers Corp (NYSE:ECO). The company is currently trading at a low P/E ratio of 7.62, which suggests that the stock may be undervalued relative to its near-term earnings growth potential. Moreover, Okeanis Eco Tankers has demonstrated a strong return over the last year, with a 75.98% price total return, aligning with the positive sentiment expressed by B.Riley.
InvestingPro Tips for Okeanis Eco Tankers suggest that the company's stock generally trades with low price volatility and is trading near its 52-week high, at 99.18% of the peak value. These factors may offer investors a relatively stable investment with the potential for continued growth, especially considering the company's strong adjusted EBITDA of $238.64M USD in the last twelve months as of Q4 2023, which reflects a substantial growth of 64.04%.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ECO. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of insights on Okeanis Eco Tankers and other investment opportunities.
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