Opinions
The Panic-Proof Portfolio (Stockchase Research)
Global Ship Lease Inc
GSL-N
TOP PICK
Feb 04, 2025
Stock price when the opinion was issued
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We reiterate this Greek shipping company as a TOP PICK. Global shipping will need to step in to assist global trade supply chain adjustments and this company is well suited to participate. We like that cash reserves are growing, while shares are bought back. It trades at 3x earnings, under book value and supports a 26% ROE. Management says that over three-quarters of their capacity is already booked for 2025. The yield is attractive and is supported by a payout ratio under 20% of cash flow. We recommend trailing up the stop (from $17) to $19, looking to achieve $28 — upside potential over 20%. Yield 7.3%
(Analysts’ price target is $27.75)Our PAST TOP PICK with GSL has triggered its stop at $19. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 15%, when combined with our previous guidance.
The Greece based container ship company trades under 2x earnings, under book value and supports a ROE of 25%. We like that cash reserves are growing, while shares are bought back. The healthy dividend is backed by a payout ratio under 20% of cash flow. We recommend setting a stop-loss at $17, looking to achieve $30 — upside potential of 36%. Yield 7.2%
(Analysts’ price target is $30.00)