In a note emailed to clients Noah Parquette saidthe industry is coming off a cyclical low that, in hindsight, likely occurred inthe middle of 2013.

The analyst, who is based in theCanadian investment bank’s Manhattan office, argued that the capesize sectorwill be on the front line of a rally from both a supply and demand perspective.

“Demandgrowth has remained strong, driven by appetite in developing economies for ironore, coal, grain, and many minor bulks,” he continued, adding:

“In particular,the outlook for high-grade imported iron ore into China from Australia andBrazil, and the potential for coal imports into India, looks promising.

“On the supply side we see capesize rates being increasingly volatileas oversupply slackens and believe Q4 could see anotherstrong spike due to seasonal volatility.”

Theforecaster believes the dry-bulk market will hit “mid-cycle levels” toward the end of2015 and expects to see a near-term cyclical peak take shape ayear later.

Parquette stamped shares of Navios Maritime Holdings, Paragon Shipping,Safe Bulkers and Star Bulk Carriers with “buy” ratings.

“Hold” recommendations werehanded out to Nasdaq-listed compatriots Baltic Trading Ltd and KnightsbridgeTankers.

Parquette’s initiation of dry-bulk stocks marks the latest phase of acampaign to cash in on the rising tide of owners that are looking to tapthe capital markets.

In March Canaccordhired industry veteran Henry Williams to serve as the managing director of itsmaritime, energy services and infrastructure unit.

A fewweeks later the firm poached Parquette from Maxim Group to oversee shippingresearch in a move that marked the conclusion of a tour that lasted only sevenmonths.

AsTradeWinds has reported, observers believe Canaccord’s recruitment initiativerepresents a broader bid to expand its presence in an industry that has been onits radar for some time.

Market sources say they wouldn’t be surprised tosee the investment bank initiate research coverage of tanker and offshorestocks in the months to come.