UPDATE: JP Morgan Downgrades Navios Maritime Partners to Neutral on Valuation, Distribution Risk
JP Morgan downgraded Navios Maritime Partners (NYSE: NMM) from Overweight to Neutral and maintained its $16.00 price target.
JP Morgan commented, "After a modestly better than expected Q4 result, we remain confident in delivery of steady distributions through early 2014. However, absent a sharp recovery of the dry bulk market (and at the current NMM unit price), our estimates suggest a rising probability of a sizeable distribution cut in 2014 (c.20%). With NMM currently trading on a '13e yield in-line with the average of the past two years (c.12%), a gradual shift of market focus to 2014 risks could result in more attractive entry points ahead. As such, we downgrade from Overweight to Neutral given less attractive risk/reward."
Navios Maritime Partners closed at $14.67 on Friday.
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