Deutsche Bank Downgrades Overseas Shipholding Group (OSG) to Sell; Dividend Cut And Untenable Valuation

Deutsche Bank downgraded Overseas Shipholding Group (NYSE: OSG) from Hold to Sell, price target lowered to $11.00.

Deutsche analyst says, "Following another quarterly loss from OSG coupled with a 50% cut in its dividend, we are downgrading the stock to SELL from HOLD. We have lowered estimates and can no longer substantiate our prior valuation. OSG continues to suffer from low tanker rates, significant interest expense, and charter-hire obligations (read off-balance sheet debt), which have converged into a cash-burning machine. While we expect the tide to turn next year, there is little to incentivize investors to stick around for the time being, especially now with only a 4.1% dividend yield."

For more ratings news on Overseas Shipholding Group click here and for the rating history of Overseas Shipholding Group click here.

Shares of Overseas Shipholding Group closed at $21.60 yesterday.

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