Analyst: Aegean Will Remain Strong Throughout Greek Debt Crisis

Paul Howard says that Aegean will continue to thrive in its world-wide operations, even amid Greek bankruptcy.

Despite the Greek debt crisis, Aegean Marine Petroleum Network Inc. (Aegean) [NYSE:ANW] will finish out the year at a record $20 per share, according to an analysis by Seeking Alpha.

"Greece can go bankrupt and ANW will continue to thrive in its world-wide operations," says investor Paul Howard.

With increased marine fuel and lubricant consumption, Aegean's already strong global sales stand to benefit, argues Howard.

"Its multi-continent expansion and cost-containment initiatives are humming along with earnings growth averaging 18 percent annually over the past 5 years and expected to continue at 20 percent through 2018."

While Aegean may be based out of Athens, Howard says that the lack of confidence the company is being subjected to on the stock market is unwarranted, pointing out that although it is a Greek company, its finances are not tied to the country's financial woes.

"ANW is a global business enterprise that just happens to be headquartered in Athens, Greece but has been smart enough to have few connections to Greek banks."

Howard argues that Aegean's fixed expenses are quite stable, and while fuel prices do not affect the company's ability to turn a profit, lower fuel prices decrease the company's costs and increase the quantities that the company sells.

"The key takeaway here is that, fuel prices don't affect ANW's earnings potential," says Howard.

He also explains that there are four "mainstream" analysts that follow and currently rate Aegean as "buy" or "strong buy," and three independent research firms of the six that Howard follows that rate the company as a "outperform", while the other three rate it as "neutral."

Howard adds that the average price target from these analysts is about $17 to $20 per share for Aegean, and while the current stock price may be down with news of Greece's financial situation, he argues that the company's current price does not reflect expected sales and earnings growth over the next 24 months.

"My observations and research show that ANW is being unduly punished for no reason other than the Greek debt crisis," Howard concludes.

"Operationally, it is hitting on all cylinders and barring an unexpected slowdown in maritime cargo shipping, should continue its 18 percent - 20 percent growth pattern for the foreseeable future."

In May, Aegean said that the drop in oil prices have been a welcome development for its business.