UPDATE: BTIG Starts Diana Shipping (DSX) at Buy, $5 PT

February 8, 2021 4:16 PM EST
Get Alerts DSX Hot Sheet
Price: $3.29 +7.52%

Rating Summary:
    5 Buy, 11 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 20 | New: 68
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(Updated - February 8, 2021 5:20 PM EST)

BTIG analyst Gregory Lewis initiates coverage on Diana Shipping (NYSE: DSX) with a Buy rating and a price target of $5.00.

The analyst commented, "We initiate coverage of Diana Shipping with a Buy rating and a $5 PT. We view the current stock price as an attractive entry point on the heels of the company’s recently completed stock tender ($2.50/share) where DSX purchased $15M of stock (~7% of outstanding shares). DSX has had a tough few years on the back of a weak freight market which has seen the balance sheet stretched and the fleet age. And while modern ships typically outperform over a cycle, during a market recovery (what we expect over the next two years, older ships (roughly 50% of DSXs fleet is 10+ years old) tend to outperform. We note while modern vessel prices are up 5%-10% YTD, 10+-year-old tonnage prices are up 15%-20%. Bottom line: we expect management to use the on-going market recovery to continue to strengthen the balance sheet (net debt dropped ~10% in 2020) and renew the fleet. Our $5 PT points to roughly a 20% premium to NAV; however, given our expectation of an improving rate market, we expect asset prices to move higher in 2021."

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

Shares of Diana Shipping closed at $2.61 yesterday.


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