Jefferies Reiterates Buy Rating On EGLE

Jefferies is reiterating its Buy rating on shares of Eagle Bulk Shipping (NASDAQ: EGLE).

“While we are maintaining our 2011 EPS estimates, we are modestly reducing our 2012 EPS estimate to reflect the new, lowered contracted base rates on the 12 vessels,” Jefferies writes.

“Although we are reducing our 2012 EPS estimate and do believe dry bulk shipping charter rates are likely to remain under pressure in 2012, we do believe the revised contracts provide Eagle with even greater longer-term revenue and cash flow upside potential than the previous contracts should/when dry bulk shipping charter rates eventually improve between 2013 and 2018.”

Eagle Bulk Shipping closed Friday at $3.93.