DNB Markets Re-Initiates Coverage on Overseas Shipholding Group

In a research report published today, DNB Markets has resumed coverage on Overseas Shipholding Group

with a Sell rating and $8 PT. According to DNB Markets, "OSG is a mix of product tankers, vessels sailing under the US flag and crude tankers, with only 10% contract coverage on the international crude and product tankers, leaving the company vulnerable to a decline in VLCC rates and persistently low product tanker rates. Further, OSG's balance sheet looks weak to us, although an unsecured credit facility offers temporary relief. We expect asset values to remain under pressure in light of the high share of the unfinanced order book, which we argue limits the company's legroom in terms of financing." Overseas Shipholding Group closed yesterday at $10.25.