Piraeus Securities has initiated coverage of Safe Bulkers, issuing an“outperform” rating and a price target of €6.70 per share, which implies an upside potential of approximately 18% from the closing price on June 1 (€5.68).
According to Piraeus Securities analyst George Vrekos, the positive investment outlook for the stock is based on the conservative and disciplined fleet renewal strategy pursued by management, the company’s strong financial position, and its attractive valuation relative to the value of its assets.
Safe Bulkers operates in the dry bulk shipping sector, primarily transporting iron ore, coal, grain, bauxite, and other basic commodities. It currently has a fleet of 45 vessels, two of which have been agreed for sale, while it also maintains an order book of 11 newbuilds with deliveries through 2029. Assuming no additional vessel sales take place, the fleet could grow to 54 vessels in the coming years.
As noted in the report, management took advantage of the particularly strong freight market in 2021–2022 to sell older vessels at attractive valuations and reinvest the proceeds in newer, more efficient vessels. As a result, the company is entering the next phase of the shipping cycle with a more modern and environmentally upgraded fleet compared to several of its competitors. Based on the current order book, the fleet is expected to grow from 45 vessels today to 54 vessels by 2029, while maintaining a low average age.
Piraeus Securities also highlights the company’s significant financial flexibility, as total liquidity amounts to approximately $400 million, supporting both the investment program and the ability to capitalize on opportunities that may arise during the cycle. At the same time, the company has maintained a stable quarterly dividend of$0 .05 per share since 2022.
The report notes that the dry bulk market has started 2026 stronger than initially expected, with demand supported by resilient cargo flows, increased tonne-miles, and continued exports of iron ore and bauxite. At the same time, the company is likely to benefit from long-term structural trends, such as the development of artificial intelligence infrastructure, the transition to electric mobility, and the increase in global defense spending, which are expected to support demand for steel, aluminum, bauxite, and iron ore.
Regarding valuation, Piraeus Securities notes that the stock is trading at a significant discount of approximately 40% to its estimated net asset value (NAV) of $11per share. According to the report, the company remains well-positioned to benefit from improving dry bulk market fundamentals, the renewal of its fleet, and the operational leverage provided by a stronger freight rate environment.
To value the company, Piraeus Securities applies a blended methodology, assigning equal weight (50%-50%) to forward net asset value (Forward NAV) and normalized earnings. This approach leads to a targetprice of €6 .70 per share for the end of 2026, implying an upside potential of approximately 18% from current levels.