Deutsche Bank Downgrades Genco Shipping (GNK) to Sell; Oversupply Likely Keeps Pressure On Rates And Values

Deutsche Bank downgraded Genco Shipping (NYSE: GNK) from Hold to Sell with a price target of $4.00.

Deutsche analyst says, "We are downgrading shares of GNK to Sell, inline with our view of continued spot rate weakness. Over the past two years as GNK’s charters have run-off, GNK has shifted its fleet mix from fixed-charters to spot-linked charters. While the company has a substantial cash stockpile in excess of $200 million, we believe it is in danger of a net debt/EBITDA covenant breach later this year or next and could see negative operating cash flow in the coming quarters if rates underperform our estimates."

For more ratings news on Genco Shipping click here and for the rating history of Genco Shipping click here.

Shares of Genco Shipping closed at $6.54 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Genco Shipping takes delivery of new Capesize vessel
• Genco Shipping & Trading Limited Announces Delivery of High Specification Capesize Vessel
• Diana Shipping drops bid for Genco after price demands spike to $36.91