UPDATE: JP Morgan Initiates Costamare at Overweight on Attractive Dividend Yield, Cash Flow Visibility
JP Morgan initiated coverage on Costamare (NYSE: CMRE) with an Overweight rating and a $16.50 price target.
JP Morgan noted, "A defensive, long-term containership chartering strategy with quality counterparties contracted for an average duration of eight years underpins a solid c.7% dividend yield. While the industry continues to suffer from overcapacity challenges likely to extend well into 2014, the bulk of CMRE's fleet is contractually covered through 2015 and beyond. We initiate coverage with an Overweight rating given an attractive yield backed by this solid cash flow visibility. Our price target implies modest c.7% underlying upside potential."
Costamare closed at $15.31 on Monday.
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