Opinions
The Panic-Proof Portfolio (Stockchase Research)
Ardmore Shipping Corp
ASC-N
TOP PICK
Feb 04, 2025
$11.820
Stock price when the opinion was issued
Transportation
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TOP PICK
Stockchase Research Editor: Michael O'Reilly
The shipping sector has come under increasing pressure as the speculation of US tariffs continues. Earnings estimates for ASC have been heavily discounted into the share price, so if there is any upside impacting the shipping sector the stock should respond very positively. It trades at 8x earnings, under book value and supports a ROE of 21%. We continue to recommend a stop at $8.50, looking to achieve $12.50 -- upside potential of 25%. Yield 4.6%
(Analysts’ price target is $12.50)
Transportation
This operator of midsized tankers used for refined petroleum and chemicals has reduced its daily cost of operations by 30% to deal with tight market conditions. This has allowed the company to generate growth in cash reserves, while retiring debt. The healthy dividend is backed by a payout ratio under 40% of cash flow. We recommend setting a stop-loss at $8.50, looking to achieve $17.00 — upside potential of 41%. Yield 8.6%
(Analysts’ price target is $17.00)