Due to limited investments since the crash in oil prices in 2016 and the lack of bank financing, the number of vessels has been unable to keep up with the demand surge due to competition from the renewable energy sector.
Maybank Securities analyst Jarick Seet has initiated a “buy” call on Marco Polo Marine (SGX:5LY
) with a target price of 8.8 cents. Seet’s target price represents an upside of 54% from the stock’s closing price of 5.9 cents as at March 20 and is based on 11 times Marco Polo Marine’s estimated FY2024 P/E.
“Marco Polo Marine, a long-time operator in the chartering and shipyard business, is benefiting from the surge in demand and charter rates due to competition for vessels from the oil and gas (O&G) and renewable energy sectors,” writes Seet in his March 20 report.
