UPDATE: Deutsche Bank Downgrades Genco Shipping & Trading to Sell on Valuation

Deutsche Bank lowered its rating on Genco Shipping & Trading GNK from Hold to Sell and suspended its previous $2 price target. Deutsche Bank noted, "We are downgrading GNK to Sell-rated from Hold-rated as shares have rallied 16.7% since Q2 (vs. the S&P 500's 7.0% gain) and asset values have declined. However, our current NAV estimate is negative $6/share, down from negative $5/share in August. While GNK has ample liquidity to weather a weak 2013, loan repayment waivers expire in 2014 and unless the market materially recovers, liquidity risk will once again return. We expect the current support for GNK's share price to dissipate as we move through Q4 and rates once again decline into 2013. We attribute much of the recent share price improvement from rates recovering off of trough levels, and expect to see Q1 2013 spotmarket weakness, particularly in the Cape sector." Genco Shipping & Trading closed at $3.56 on Thursday.