According to The Fly, credit Suisse analyst Gregory Lewis reiterated a Hold rating on Diana Shipping (NYSE: DSX) on July 28 and set a price target of $2. The company’s shares closed yesterday at $2.60, close to its 52-week low of $1.95.
Lewis commented, “We lower our TP to $2 (from 3) which is in-line with our NAV estimate. Waiting For The Recovery. The long term charter market has all but dried up in dry bulk with long term contracts averaging 3-6 months. To that point DSX potentially has zero contracted days in 2H17 (redelivery dates matter). We lower our 2016/2017 EPS estimates to a loss of $1.70/-$1.63 (from – $1.67/-$1.37) to account for our rate expectations of lower for longer. Help. The BDI is on pace to have its worst year ever with charter rates bouncing around cash breakeven levels. Both Panamax and Capesize rates have averaged ~$4k/d YTD, which means most owners are losing money even before addressing financing costs. On a positive July is shaping up to be the best month of 2016 YTD with Panamax/Capes averaging $6k/d every little bit helps as ship owners and banks position to manage the down-cycle. Earnings. DSX reported a Q2 loss of $0.41 in-line with consensus of -$0.40 (CS -$0.41). Net revenue was $25M (consensus $27M) which was up 3% Q- Q and down 28% Y-Y. EBITDA was -$4M (consensus -$4M) and margin was -16%. This was DSXs 2nd EBITDA loss since going public in 2005 (the first was 1Q16).”
According to TipRanks.com, Lewis is ranked 0 out of 5 stars with an average return of -10.2% and a 40.9% success rate. Lewis covers the Services sector, focusing on stocks such as Overseas Shipholding Group, Navios Maritime Midstream, and Nordic American Offshore.
Diana Shipping has an analyst consensus of Moderate Sell
The company has a one year high of $7.73 and a one year low of $1.95. Currently, Diana Shipping has an average volume of 508.2k.
Diana Shipping, Inc. operates as a holding company, which provides shipping transportation services through the ownership and operation of dry bulk vessels. The company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. Diana Shipping was founded on March 8, 1999 and is headquartered in Athens, Greece.