UPDATE: Stifel Initiates Coverage on Ultrapetrol Bahamas on Strong Balance Sheet, Good Market Position

In a report published Wednesday, Stifel analyst Benjamin Nolan initiated coverage on Ultrapetrol Bahamas Ltd. (NASDAQ: ULTR) with a Buy rating and $5.00 price target.

In the report, Stifel noted, “We are initiating coverage of Ultrapetrol (Bahamas) Limited (ULTR) with a Buy rating on the shares and a $5.00 target price. With record soy production driving river revenue and the contribution of additional vessels and higher day rates from the offshore oil field services segment, we believe ULTR is likely to see EBITDA nearly triple from 2012 levels. Furthermore, we believe demand will continue to grow for river barges and offshore supply vessels in South America. Given our view of Ultrapetrol's strong balance sheet, we believe the company is well positioned to fund growth and see earnings and cash flows expand further.”

Ultrapetrol Bahamas Ltd. closed on Tuesday at $3.51.