Deutsche Bank Downgrades Genco Shipping (GNK) to Sell; Shares Up But Asset Value Down

October 19, 2012 8:50 AM EDT
Get Alerts GNK Hot Sheet
Price: $0.53 --0%

Rating Summary:
    2 Buy, 4 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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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."

For an analyst ratings summary and ratings history on Genco Shipping click here. For more ratings news on Genco Shipping click here.

Shares of Genco Shipping closed at $3.56 yesterday.

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