Despite a stormy year in the dry bulk shipping industry, Deutsche
Bank issued a Buy rating on Scorpio Bulkers Inc (NYSE: SALT) with a price target of $7.25.
Upgrade Justification
The previous Hold rating was adjusted to reflect increased optimism about the shipping industry partly inspired by significant
increases in share counts throughout the year. Analyst Amit Mehrotra posited that the market may become “more rational” after it
tanked in 2016.
The specific valuation — up from the previous $4.50 — was reflective of Scorpio Bulkers’ newly positive balance sheet, which is superior to those of its
competitors.
The Sector
The Deutsche Bank report acknowledged cuts in dry bulk rates and asset values as primary risks for company shares, which rose 10
percent on Tuesday after closing 2016 about $0.71 higher than they began the year.
Meanwhile, Safe Bulkers, Inc. (NYSE: SB)
rose $0.73 throughout the 2016, Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) fell $1.69 and Navios Maritime Partners L.P. (NYSE:
NMM) dropped $0.93.
Latest Ratings for NMM
| Date |
Firm |
Action |
From |
To |
| Feb 2016 |
Citigroup |
Maintains |
|
Neutral |
| Feb 2016 |
Jefferies |
Maintains |
|
Buy |
| Jan 2016 |
JP Morgan |
Upgrades |
Neutral |
Overweight |
View More Analyst Ratings for
NMM
View the Latest Analyst Ratings
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.