Braemar Shipping Share Price (BMS)

Good to see another institutional shareholder buying and now declaring a major holding. Minna Invest GmbH now have 992,398 shares and 3.01% of BMS.

They don't appear as having over 2% on the latest market summaries, so they must have bought quite a few relatively recently:

Https://uk.marketscreener.com/quote/stock/BRAEMAR-PLC-4001661/company/

Featured on Master Investor:

Https://masterinvestor.co.uk/equities/small-cap-catch-up-bms-ztf-cury-and-more/

"Braemar (LON:BMS) – Looking Totally Undervalued

Yesterday morning’s Trading Update for the year to end February 2024 declared that the shipping services group had achieved a strong year in line with market expectations.

Revenue is expected to be not less than £150m (£153m) with underlying operating profit of not less than £18m (£20m).

That really was quite a year that its management must surely hope was now well out of the way.

The £73m capitalised group kept a positive cash position with net cash at 29th February 2024 of £1m (£7m), which was a decrease from the prior year after the cost of the internal independent investigation conducted and concluded last year, certain tax payments and share buy backs during the period.

As for this new year the company has informed investors that its total forward order book is some 47% up at $83m, which is a good advance from the $65.6m book as at end October last year.

With its finals due to be announced in May it is worth reminding readers that analyst Ian McInally at Cavendish Capital Markets has previously estimated that the current year revenues could rise to £154.4m, with adjusted EBIT of £18.2m, worth 36.5p in earnings and enabling a 14.9p dividend per share.

Come the May figures we could well see upgrades helping to pinpoint just how undervalued this group’s shares are at last night’s closing price of 256p.

I still find it hard to understand why these shares are so lowly valued, they are destined to rise above the 300p level fairly soon."

Edison have a new note out - they have a 500p price target.

They forecast 45.4p EPS for the year just finished, with 46.4p EPS this year.

That's backed up with a 13p dividend, rising to 14p this year:

Https://d3s3shtvds09gm.cloudfront.net/c06876e7564a986049fdc15f35be0f12.pdf

"Outlook encouraging with c 100% valuation upside

The outlook is encouraging, evidenced by the underlying global trade situation (the

IMF raised global GDP growth estimates by 0.2% to 3.1% in February) and the forward order book, which was up 47% to US$83m, driven primarily by activity in the Sale and Purchase division. FY24 results are expected to be released by the end of May.

We have maintained our estimates for FY24 and FY25 but edged down our FY24 dividend expectations from 13.5p to 13.0p, which implies a modest reduction in our previous valuation of 520p to 500p per share, based on our dividend discount model"

Today's nicely in line year end update suggests the recent drop has made BMS excellent value.

We can expect EPS of somewhere between Cavendish's 38p EPS and Edison's 45.4p EPS.

Accompanied by a 13p dividend, lifted by 8%.

Most importantly, the order book is up a whopping 47% to $83m, suggesting that the current year is looking very good.

Maybe this week?