Norwegian investment bank Fearnley raises its recommendation regarding a number of dry bulk stocks, reports Bloomberg News.

Analyst Oystein Vaagen has made an upward adjustment from ”hold” to ”buy” for Norwegian Belships, 2020 Bulkers and Golden Ocean as well as US-listed Eagle Bulk Shipping, Genco Shipping, Star Bulk Carriers and Pangaea Logistics Solutions.

As shipping stocks factor in a small decline in the asset value, current revaluations provide a fitting entry point to the shares, notes the analyst according to business media The Fly.

Strong dividends and a view that asset values have reached bottom levels create ”solid optionality in a recovering market,” The Fly cites Vaagen saying.

Several other analysts have in recent weeks highlighted how the reopening of China will result in increased demand for iron ore and grain.

The price target of Golden Ocean, with billionaire John Fredriksen as major shareholder, is raised from NOK 88.18 (USD 8.9) to NOK 113.72, with the stock increasing by 3.7 percent to NOK 94.02 on the Oslo Stock Exchange.

2020 Bulkers, following a raised price target from NOK 100 to NOK 125, has increased by 6.3 percent to NOK 99.50.

English edit: Kristoffer Grønbæk