Our $22 target price is derived through a 20-year NPV valuation and implies a 5.6x EV/EBITDA multiple on our 2027 estimates. Our NPV model assumes a 12% discount rate and cap rate.
Downside risks to our target price being achieved include rising fleet age, shipping rate volatility, losing liquidity in order to amortize debt in the event rates decline below cash breakeven level, and low trading liquidity and float.