UPDATE: DNB Markets Initiates Diana Shipping to Buy on Dry Bulk Demand Trends
DNB Markets initiated coverage on Diana Shipping (NYSE: DSX) with a Buy rating and an $8.80 price target.
DNB Markets commented, "We expect 2012 to mark the trough in dry bulk utilisation, at 83%, rising to 84% in 2013 and 87% in 2014 on a declining order book and longer sailing distances. We forecast annual ton-mile demand growth of 11% over 2013–2015, versus 9% annually over 2004–2007. We expect global export iron ore and coal capacity to increase by 10% p.a., after canvassing, and compiling data from, c90% of the world's iron ore, coal ports and miners. Our port study makes us confident commodity prices will stay low, justifying our above-trend demand growth assumption, arguing China will be incentivised to import rather than rely on domestic production due to higher production costs domestically."
Diana Shipping closed at $7.59 on Tuesday.
Latest Ratings for DSX
|Sep 2014||Deutsche Bank||Initiates Coverage on||Buy|
|Jul 2014||Stifel Nicolaus||Upgrades||Hold||Buy|
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