UPDATE: Clarkson Capital Markets Cuts PT to $8 on Diana Containerships on 2013 Outlook
Clarkson Capital Markets reiterated its Outperform rating on Diana Containerships (NASDAQ: DCIX) but reduced its price target from $9 to $8.
Clarkson Capital Markets noted, "As the balance sheet is among the best in class, contract cover is solid and DCIX has a forecast current yield of 13% we believe DCIX is attractively priced. Still on a tighter 2013 outlook we are lowering our price target to $8 from $9 reflecting the risk the market appears to be associating with container shipping and the macroeconomy. Our $8PT is a discount to our DCF of $10/share and is equivalent to a 10% current yield on our 2013 dividend forecast which we believe is a reasonable yield target today especially with their strong balance sheet and expected growth."
Diana Containerships closed at $5.52 on Friday.
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Tags: Clarkson Capital Markets