Navios soars

Shares in Navios Maritime Holdings jumped nearly 13.5% Tuesday on the back of its deal to acquire four capesizes for $324.5m.

Navios shares rose nearly 13.5% Tuesday

Upbeat assessments from analysts at Dahlman Rose and Lazard Capital Markets also helped to boost investor interest in the stock.

Dahlman’s Omar Nokta continues to be “very positive” on Navios’ shares and reiterates his buy rating on the stock with a price target of $8.

“The company’s growth program has been focused within the capesize sector, which in our view continues to offer the best returns,” he said.

“With its growth fully-financed and secured on long-term contracts, we see substantial value in Navios’ shares.”

“Capesize rates are currently trading above $80,000 per day and we expect further increases in asset values in the coming weeks.”

“A 20% increase in ship prices puts five-year-old capesize values at $65m, which implies an NAV for Navios of $12 per share.”

Urs Dur at Lazard has raised his price target for Navios’ stock from $6 to $7 per share and has raised his 2010 EPS estimates to $1.30 from $1.15.

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