Core Viewpoint - Morgan Stanley has raised the target price for Pacific Basin Shipping (02343) by 24.7%, from HKD 2.15 to HKD 2.68, while maintaining a "Market Perform" rating [1] Company Summary - The company’s earnings per share forecasts for 2025, 2026, and 2027 have been increased by 30%, 27%, and 3.3% respectively, benefiting from improvements in the spot market observed in July [1] - The spot rates for Handysize and Supramax vessels have increased by 26% and 55% respectively since the end of June, with year-on-year increases of 13% and 20% [1] Industry Summary - The dry bulk market outlook is becoming more optimistic due to a gradual improvement in the spot market since July 2025 [1] - Supply growth for the year is expected to remain stable, with Handysize supply around 4% and Supramax supply around 4.5% [1] - Key drivers for the enhanced spot market include increased internal demand, such as rising iron ore production in Brazil, which has extended the transportation distance for Capesize bulk carriers, and a rise in global coal exports in the third quarter [1]