OREANDA-NEWS. Braemar has, once again, demonstrated the efficacy of its acquisition programme of the past few years. While earnings look set to plateau in the immediate future due to the ongoing challenging trading conditions, the group has the financial ability to sustain its investment strategy and continue group development. We have trimmed our estimates.

Braemar shares are rated at a substantial discount to global market leader Clarkson - c 30% on the basis of prospective calendar 2016 earnings (P/E of c 13.2x vs 18.4x), falling to c 16% for 2017. This probably reflects a combination of the relative size of the two businesses and the latter's bigger recovery potential from a turn in the shipping cycle. Nevertheless, the major presence in the Asia/Pacific region, the strong balance sheet and the high yield offer considerable attractions for Braemar shareholders.

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