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

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.

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