Deutsche Bank Upgrades Genco Shipping (GNK) to Hold; Equity Dilution Risk Has Materially Moderated

Deutsche Bank upgraded Genco Shipping (NYSE: GNK) from Sell to Hold, price target raised to $6.00.

Deutsche analyst says, "After GNK announced a favorable waiver for its Net Debt/EBITDA covenant, we believe GNK’s equity dilution risk has materially moderated. GNK had a cash position of nearly $240 million at the end of Q3 (pro-forma for the waiver repayment) which should help the company survive through the cycle. However, GNK continues to maintain high spot exposure (more than 80% in 2012) which will likely constrain earnings and upside."

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 $7.45 yesterday, with a 52 week range of $4.15-$13.31.

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