Douche bank had hold in Aug with $5 target when stock was at 3.25
BDI has went up over 50% and the stock is in the quiet period, what has changed in 2 months?
Other equities research analysts have also recently issued reports about the stock. Analysts at DNB Markets initiated coverage on shares of Genco Shipping & Trading Ltd in a research note to investors on Tuesday, May 29th. They set a “sell” rating and a $2.00 price target on the stock. Separately, analysts at Global Hunter Securities initiated coverage on shares of Genco Shipping & Trading Ltd in a research note to investors on Tuesday, May 22nd. They set a “reduce” rating and a $2.50 price target on the stock. Finally, analysts at Deutsche Bank cut their price target on shares of Genco Shipping & Trading Ltd from $6.00 to $5.00 in a research note to investors on Wednesday, May 2nd. They now have a “hold” rating on the stock.
Deutsche Bank downgraded Genco Shipping (NYSE: GNK) from Hold to Sell with a price target of $2.00.
The firm comments, "We are downgrading GNK to Sell-rated from Hold-rated as shares have rallied 16.7% since Q2 (vs. the S&P 500’s 7.0% gain) and asset values have declined. However, our current NAV estimate is negative $6/share, down from negative $5/share in August. While GNK has ample liquidity to weather a weak 2013, loan repayment waivers expire in 2014 and unless the market materially recovers, liquidity risk will once again return. We expect the current support for GNK’s share price to dissipate as we move through Q4 and rates once again decline into 2013. We attribute much of the recent share price improvement from rates recovering off of trough levels, and expect to see Q1 2013 spot-market weakness, particularly in the Cape sector."
They are betting on the BDI going down in 2013, I see different. I guess this is why we have markets. My feeling is if the BDI does suffer one more year, I would imagine 2014 would be a recovery year and they should get financing or more liquidity - we will see. In this case, it may be a good idea to own dsx also.
This is the same company (Deutsche Bank) that promoted GNK going to $30 just before it went into free-fall. I've been following DB's rec's for some time now, and they're always totally wrong. Glad to see that they've downgraded the stock. That means it's an excellent time to buy.