UPDATE: Citi Lowers Price Target on Eagle Bulk Shipping to $1
According to Citi, Eagle Bulk Shipping (NASDAQ: EGLE) price target is lowered to $1.
Citi said that while disclosure in Eagle's recent credit facility amendment was vague, it understands that the company and its syndicate of lenders (led by Royal Bank of Scotland) have agreed to put negotiations regarding its loan to value covenant on hold until April 30, 2012. “Nevertheless, both this issue and the bigger concern regarding its ability to amortize its $1.1 billion facility remain as future overhangs for equity holders, thus our Sell rating.”
Eagle Bulk Shipping closed yesterday at $1.32.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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