UPDATE: Bank of America Downgrades Costamare to Neutral on Lower Re-Charter Rates
Bank of America lowered its rating on Costamare (NYSE: CMRE) from Buy to Neutral and a price objective of $16.
Bank of America commented, "For Costamare, we lowered our 2Q12, 2012, and 2013 EPS estimates 6%, 4%, and 7%, to $0.30, $1.39, and $2.10, from $0.32, $1.45, and $2.27, respectively. While we flowed through lower 2012 and 2013 rate assumptions, we also tweaked higher our vessel operating expense assumptions 3%-4% at Costamare to better incorporate opex cost inflation. We currently target per vessel cost per day of ~$6,900 per vessel, from $6,700. Our EBITDA estimates for Costamare fall 1% and 3% in 2012 and 2013, respectively, to $260 million and $325 million. Nevertheless, we do not believe this will affect the company's dividend payout of $0.27/share, or ~7.7% current yield annualized."
Costamare closed at $14.09 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.