Braemar Shipping Services (LON:BMS) – time now to pick up some cheap stock
12th March 2021
Well now we know – the group’s management is now going to focus more upon its shipbroking division. Understandably because it is doing a lot better than had been expected on its Dry Cargo and its Sale and Purchase side.
The group is also concentrating upon reducing its debt, the proceeds from the sale of half of its holding in Aqualis/Braemar, a net £6m, have helped to lower it to just £10m at the end of last month.
Analysts Guy Hewett and Michael Clifton, at the company’s brokers finnCap, are suitably impressed with current progress and have raised significantly their price objective for the shares from 205p to 281p.
The shares have been up to 258p a week or so ago, but have reacted to some profit-taking, clipping them back to close the week at around the 215p level.
Considering that the brokers are estimating that the year to end February will have seen revenues of £109.9m produce some £9.4m of adjusted pre-tax profits, worth 21p per share in earnings, that price level makes the shares look incredibly good value.
(Profile 05.12.19 @ 185p set a Target Price of 250p*)
(Profile 20.05.20 @ 99p set a Target Price of 150p*)