Ship Finance International (NYSE:SFL) saw shares jump roughly 8% following the release of its third-quarter earnings, prompting BTIG to raise its price target to $11 from $10 while maintaining a Buy rating. The new target implies a 32% upside from the stock’s current price of $8.35, near the lower end of its 52-week range of $6.73–$11.14.

SFL reported adjusted EBITDA of $113 million for the quarter, surpassing analyst estimates of $95 million by 19%. The company’s last twelve months EBITDA stands at $485.58 million, though sales are expected to decline in the current year. Compared to the prior quarter, EBITDA remained relatively flat but fell approximately 32% year-over-year, mainly due to the Hercules drilling rig remaining idle.

The company maintained its $0.20 dividend, representing around 41% of operating cash flow and yielding roughly 10% annualized. SFL has paid dividends for 22 consecutive years, making it one of the highest-yielding stocks in its sector.

During the quarter, SFL completed sales of older vessels, delivering eight Capes to Golden Ocean for $115 million and the final seven containerships to MSC under a charter agreement. These transactions may help alleviate its debt load, which currently totals $2.82 billion, with short-term obligations exceeding liquid assets.

SFL has invested approximately $100 million in fleet efficiency and emissions reduction, securing new employment opportunities. The company also has about $80 million remaining under its share buyback programme, representing roughly 8% of the company, which runs through Q2 2026. With a market capitalisation of $1.11 billion and a price-to-book ratio of 1.1, SFL continues to navigate challenging conditions while maintaining profitability.

Revenue for the quarter reached $178.2 million, exceeding projections, with 86% from shipping charter hire and 14% from energy operations. EPS came in at $0.07, significantly above the consensus estimate of -$0.03, reinforcing the company’s strong third-quarter performance.

Read the full report to see how SFL is balancing debt reduction, dividends, and growth in a volatile shipping market.