Ardmore Shipping's 'Strong Shape' Convinces This Analyst To Boost Price Target By 6%

Jefferies analyst Omar Nokta reiterated a Buy rating on the shares of Ardmore Shipping Corp ASC and raised the price target from $15 to $16.
He said Ardmore reported much stronger-than-expected Q3 earnings, driven by out-performance on its MR Tankers.
These earnings, Nokta said, represent a record for the company, a theme expected to remain consistent for product tankers owners this quarter.
The majority of Ardmore's vessels are deployed on the spot market, allowing it to effectively capture the full product market strength.
Ardmore noted it has fixed 40% of its Q4 MR spot operating days at $45,000/day, surpassing the analyst's previous $30,000/day estimate, and has secured 50% of its Handys at $31,500/day, in-line with his model.
Starting with the Q4 earnings result, Ardmore will commence a dividend policy paying out one-third of earnings on a quarterly basis.
With Ardmore having strengthened its balance sheet materially this year on the back of strong rates and following several ships' refinancing, the analyst noted that the company's balance sheet is in solid shape.
Ardmore is in strong shape and is capitalizing on a strong tanker market, which has been in place since early 2022, and the analyst forecasts will remain strong in the medium term.
Price Action: ASC shares are trading higher by 1.85% at $14.06 on the last check Wednesday.
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