UPDATE: Wunderlich Securities Downgrades Globus Maritime Limited to Hold; Limited Near-Term Upside
Wunderlich Securities downgrades its rating on Globus Maritime Limited (NASDAQ: GLBS) from Buy to Hold and lowers its price target from $8 to $4.50.
Wunderlich Securities notes, "Despite solid operating results in 1Q12, the negative impact from charter default/damages and depressed forward charter rate expectations resulted in the reduction of the quarterly dividend to $0.085 from $0.16 per share. While GLBS continues to have a strong balance sheet and excellent assets that position the company well for a future recovery in charter rates, the timeline for a rate recovery has been pushed further out. The rate recovery delay combined with near-term headwinds in 2Q12 will keep pressure on earnings and the dividend, limiting upside potential over the next 12 months."
GLBS closed at $3.85 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.