Global Hunter Securities Starts Diana Containerships (DCIX) at Accumulate; Attractive Dividend

Article Stock Quotes (1) Comments (0)

Global Hunter Securities initiates coverage on Diana Containerships (NASDAQ: DCIX) with an Accumulate. PT $9.00.

Analyst, Natasha Boyden, said, "DCIX's high dividend yield, low leverage, and experienced management team make it an intriguing play on the container shipping sector, in our opinion. The company has actively expanded its fleet since its IPO last year and we expect further acquisitions could help bolster the dividend payout."

"We believe that DCIX should trade at a premium to its current multiple, given the company's full contract coverage, which provides revenue stability and dividend support, and a low leverage level that should allow the company to expand its fleet. However, due to the company's older fleet profile, we believe it's prudent to apply a 9.0x EV/EBITDA multiple to our 2012 EBITDA estimate of $31 million, which results in our $9 price target."

For an analyst ratings summary and ratings history on Diana Containerships click here. For more ratings news on Diana Containerships click here.

Shares of Diana Containerships closed at $7.06 yesterday, with a 52 week range of $4.57-$11.01.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Diana Containerships (DCIX) Reports In-Line Q1 EPS
• Diana Containerships (DCIX) Declares $0.30 Quarterly Dividend; 20.9% Yield
• Dollar Tree (DLTR) Beats But Looks Stretched - Jefferies

Create E-mail Alert Related Categories

Dividends, New Coverage

Related Entities

Dividend

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?