UPDATE: Deutsche Bank Cuts Target to $10 on Overseas Shipholding Group

Deutsche Bank lowers its rating on Hold-rated Overseas Shipholding Group

as it thinks the company's market is fundamentally oversupplied. Deutsche Bank says, "We are maintaining our Hold-rating on OSG, and given OSG's high spot exposure and leverage, view the stock as a speculative play for an improvement in the crude and product tanker markets. Although speculative scenarios such as an Iranian showdown or other shocks to the oil complex could cause a temporary rate rally, we cannot forecast such events and are therefore less optimistic on the fundamentally oversupplied market through 2012. With OSG's reduced liquidity in 2013, covenant concerns and the need to raise capital, we remain on the sidelines." OSG closed at $8.85 a share yesterday.