Market Overview

UPDATE: Bank of America Merrill Lynch Downgrades Capital Product Partners to Underperform, Lowers PO

Related CPLP
20 Stocks Which Rallied Three Days On Increasing Volume
18 Stocks That Rallied For Three Days On Increasing Volume, No News

In a report published Wednesday, Bank of America Merrill Lynch downgraded its rating on Capital Product Partners LP (NASDAQ: CPLP) from Neutral to Underperform, and lowered its price objective from $8.50 to $7.

BofA Merrill Lynch noted, “We are downgrading Capital Product Partner's shares (CPLP) to Underperform from Neutral due to the overhang of charterer OSG, as it undergoes a financial restructuring following its November chapter 11 filing. We believe this could ultimately affect the 3 vessels that CPLP has contracted with OSG. While news of OSG's condition is well documented, its recent action to deliver 2 Suezmaxes to owner DHT Maritime and 3 smaller tankers to their respective owners highlight what is likely the beginning of a purge of above-market rate charters. CPLP's 3 vessels (Alexandros, Aristotelis, Aris II) chartered to OSG are all 2008-built 51,000 dwt product tankers; each are on bareboat charters at $13,000/day through late 2017 / mid 2018, representing ~9% of CPLP's revenues. While we are cognizant of a slowly improving market in the product sector and its potential to positively impact the company's 7 recharters in 2013, the loss of the OSG revenue increases the near term risk.”

Capital Product Partners LP closed on Tuesday at $6.68.

Latest Ratings for CPLP

Aug 2016Deutsche BankMaintainsHold
Mar 2016Standpoint ResearchMaintainsBuy
Mar 2016Wells FargoDowngradesOutperformMarket Perform

View More Analyst Ratings for CPLP
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Downgrades Analyst Ratings


Related Articles (CPLP)

View Comments and Join the Discussion!