Bank of America Securities has revised its stance on PACIFIC BASIN (02343), upgrading the stock to a "Buy" rating from "Neutral" and raising the target price from HK$3.7 to HK$4.5. The upgrade follows a core net profit of $105 million for the first half of 2026, which significantly surpassed the firm's projection of $76 million and the market consensus of $63 million.

The strong performance was primarily driven by an average daily charter rate of $15,300 during the period, exceeding the bank's estimate of $14,100. For the third quarter, locked-in average daily charter rates are already more than $4,000 higher than the same period last year, with forward curves indicating sustained momentum into the fourth quarter. Bank of America now forecasts full-year earnings per share for PACIFIC BASIN at 38 HK cents, which is 70% above the broader market expectation.

The bank views the dry bulk supply outlook as relatively mild, with geopolitical disruptions and El Niño-induced constraints on the Panama Canal boosting coal trade and supporting demand. This backdrop suggests that robust earnings in the dry bulk shipping segment could extend into the following year. In light of the better-than-expected first-half results and strong third-quarter charter bookings, Bank of America has raised its earnings per share estimates for PACIFIC BASIN for the 2026 to 2028 period by an average of approximately 31%.