UPDATE: Cantor & Fitzgerald Downgrades Eagle Bulk Shipping to Sell
Cantor & Fitzgerald lowers its rating on Eagle Bulk Shipping (NASDAQ: EGLE) to Sell from Hold as substantial leverage continues to be a concern. Target price is maintained at $1.
Cantor & Fitzgerald notes, "While we are encouraged by Eagle's exposure to the Supramax segment, which has consistently outperformed the larger vessel classes, we remain concerned about the company's high level of debt. Furthermore, we suggest there is a low probability of recovery of charterhire from its counterparty, Korea Line, and therefore Eagle now has more exposure to the weak spot market, lowering profitability and cash flow generation."
EGLE closed at $1.60 a share on Thursday.
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