Paragon Shipping (PRGN) 'Buy' Reiterated at Jefferies Despite Weak Q1

Jefferies analyst Douglas Mavrinac reiterated a Buy rating and $12 price target on Paragon Shipping Inc. (NASDAQ: PRGN) despite lackluster Q1 results.

Mavrinac commented, "Yesterday after the market close, Paragon reported an adjusted 1Q14 EPS loss of $0.31, which was below both Street consensus of an EPS loss of $0.12 and our estimate of an EPS loss of $0.21 primarily due to lower-than-expected time charter rates earned during the quarter and higher-than-expected net interest expense incurred during the quarter."

The analyst notes an attractive dry bulk shipping outlook remains intact. In addition the company is y focused on maintaining strong balance sheet.

Paragon remains one of Jeffeires favorite ways to invest in the dry bulk recovery. "With its significant balance sheet strength, over 85% spot exposure with every $1,000 per day increase in spot rates translating to $0.12 of EPS upside in 2014, and the stock trading at almost a 40% discount to our estimated NAV, we continue to believe that Paragon is one of the best positioned companies to play the dry bulk recovery."

The firm cut Q2 EPS from ($0.25) to ($0.26) , FY 2014 EPS from ($0.28) to ($0.43) and FY 2015 EPS from $0.80 to $0.71.

For an analyst ratings summary and ratings history on Paragon Shipping Inc. click here. For more ratings news on Paragon Shipping Inc. click here.

Shares of Paragon Shipping Inc. closed at $5.67 yesterday.

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