Stifel has issued a “buy” rating to New York-listed bulker owner Genco Shipping & Trading on expectations of strong seasonal demand and China’s economy recovering from Covid-19 lockdowns.

The US investment bank, which began covering its shares on Thursday, foresees China’s likely economic stimulus payments and reopening as a boon to the country’s iron-ore hungry construction sector.

“On top of that, the orderbook is at a multi-decade low, so any slight increase in demand should push rates up meaningfully,” analyst Ben Nolan wrote in a note on Thursday.