Deutsche Bank Upgrades Overseas Shipholding Group (OSG) to 'Hold' Due To Reduced Downside Risk

Deutsche Bank upgraded Overseas Shipholding Group (NYSE: OSG) from Sell to Hold, price target raised from $9 to $13.

Deutsche analyst says, "While we suggest the company will continue to have poor profitability in 2012 given its high operating and financial leverage, low charter coverage and our weak rate outlook for 2012, we note that the stock has fallen 62% since the beginning of 2011. Furthermore, we suggest the company has ample liquidity to withstand the downturn in tanker rates. As such, we believe downside risk is more limited at current levels. We now look for the company to report 4Q:11 EPS of ($2.21) (from ($1.96)) and 2011 EBITDA of $46 million (from $54 million). For 2012, we expect OSG to generate EPS of ($5.87) (from ($3.83)) and EBITDA of $81 million (from $176 million)."

For an analyst ratings summary and ratings history on Overseas Shipholding Group click here. For more ratings news on Overseas Shipholding Group click here.

Shares of Overseas Shipholding Group closed at $13.51 yesterday.

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