Euroseas weakness from end of port strikes likely temporary, says Alliance

Alliance Global Partners notes that the sudden end to work stoppages at several ports on the East and Gulf Coasts was a relief for the broader stock market, but triggered sharp stock price weakness in Euroseas on Friday as the news was seen as a major negative for the containership group. The firm, which emphasizes that any work stoppages or congestion were not part of its thesis when it had initiated research coverage in early September, believes that Friday’s stock price weakness is likely to prove to be temporary. Potential labor issues at several U.S. ports, which could have further supported containership rates, have been pushed out into next year and forward charter cover is high over the next year, notes the firm, which adds that it believes that several containerships are well positioned to secure attractive time charters in Q4 of 2024, which would further improve forward cover. The firm maintains a Buy rating and $60 price target on Euroseas shares.