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Deutsche Bank Upgrades Star Bulk Carriers (SBLK) to Buy

September 28, 2015 6:41 AM EDT
Get Alerts SBLK Hot Sheet
Price: $23.87 -0.83%

Rating Summary:
    12 Buy, 3 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank upgraded Star Bulk Carriers (NASDAQ: SBLK) from Hold to Buy with a price target of $3.00. Analyst Amit Mehrotra has increased optimism on dry bulk rates.

"The rationale for the upgrade is pretty straight forward: We are optimistic on the near-term outlook for dry bulk spot rates and SBLK has the most leverage to this outlook- based on the company’s massive 70-ship on-the-water fleet. We also see limited downside following the significant sell-off in shares (down 80% in last 12mo vs. S&P down 4%), significant cash cushion (on the back of two equity financings), and recent rebound in spot rates to well above opex breakeven levels," said Mehrotra.

"We also see upside in SBLK shares as investors start to prescribe some relevancy to net asset value in a stable and recovering spot rate environment. Based on the most recent disclosures of current and pro forma capital structure, as well as what we believe to be realistic asset value assumptions, we estimate SBLK’s NAV to be about $3.80 per share, about 60% above SBLK’s current trading level," added the analyst.

For an analyst ratings summary and ratings history on Star Bulk Carriers click here. For more ratings news on Star Bulk Carriers click here.

Shares of Star Bulk Carriers closed at $2.43 yesterday.



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