SBLK-US (BUY, TP 14) 3Q17 Review: Weak 3Q17 but TP unchanged

The 3Q17 report was a bit soft in our view, with average TCE of $9.6k/d vs our 10.7 forecast and G&A $2m higher than expected. Thus, EBITDA of $26m came in below our $35m forecast and consensus at 30m. EPS of -0.12 compares with our +0.02 forecast and consensus’ -0.02. No significant surprises in the report, but we lift our near-term estimates as the company reports 80% of fleet days in 4Q17 locked in at $12.6k/d (vs our $11.3 estimate). Although we see short term downside risk to shares from falling spot rates, significant price depreciation would represent an opportunity to BUY the share. We reiterate our 1y TP of $14/sh.

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