Shipping companies have seen extreme volatility over
the past few days on little to no news. But on Thursday, the group was able to dissect an earnings report from Diana Shipping
Inc. (NYSE: DSX).
Diana Shipping reported a third-quarter loss of $0.35 per share on
revenue of $27.1 million. Wall Street analysts were expecting the company to lose $0.41 per share on revenue of $28.06 million.
Reiterate Sell Rating
Spiro Dounis of UBS maintains a Sell rating on Diana Shipping with an
unchanged $1.25 price target following the earnings report, noting that the company's outlook remains "unclear."
Dounis noted Diana Shipping terminated discussions held with lenders regarding amendments of outstanding loan facilities after
reaching an agreement with lenders in August. The analyst added the company didn't provide any updates in its earnings report, but
the company made its "more aggressive approach to negotiations known last quarter."
Ultimately, Path Forward Is Unclear
Dounis continued that Diana Shipping's management does not expect to sit back down at the negotiating table with lenders. The
company does have $108 million in cash which gives it some "room to ride the downturn." Nevertheless, the path forward for the
company remains uncertain and a scheduled discussion with the company on November 29 could provide further clarity.
At last check, Diana Shipping was up 2.5 percent at $3.48.
Latest Ratings for DSX
Date |
Firm |
Action |
From |
To |
Aug 2016 |
Deutsche Bank |
Upgrades |
Sell |
Hold |
Aug 2016 |
Seaport Global |
Assumes |
|
Neutral |
Jul 2016 |
Jefferies |
Maintains |
|
Hold |
View More Analyst Ratings for
DSX
View the Latest Analyst Ratings
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