UPDATE: Bank of America Downgrades Diana Containerships to Underperform on Lower Re-Charter Rates
Bank of America reduced its rating on Diana Containerships (NASDAQ: DCIX) from Neutral to Underperform with a $7.50 price objective.
Bank of America noted, "With few peers competing for second-hand vessel purchases, and a strategy levered to cyclical improvement in the mid-size container shipping segment, an investment in Diana Containerships is an opportunity to purchase a chartered fleet of vessels at a discount to our conservative NAV estimate while benefitting from a high dividend payout structure. However, we are concerned that the current soft time charter rate environment will limit the company's ability to grow its fleet and dividend."
Diana Containerships closed at $7.38 on Monday.
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