Jonathan Chappell of Evercore Partners has placed an overweight rating on the Petros Pappas and Oaktree-backed company that he says has gone from a “midget to a giant” in little more than a year.

Chappell says a recovery in the dry cargo market should bring robust returns for Star Bulk, which he believes is an undervalued stock.

In placing a $16 per share target price on Star, Chappell explains the company has been transformed in just 14 months from a micro-cap firm with an ageing fleet to one owning 69 bulkers.