UPDATE: Deutsche Bank Initiates Coverage on StealthGas with a Buy on Favorable Demand

In a report published on Thursday, Deutsche Bank analyst Justin Yagerman initiated coverage on the shipping transportation StealthGas Inc. GASS with a Buy rating and a price target of $14 based on favorable revenue growth prospects and increased demand for transportation services. In the report, Yagerman stated, "In shipping, we initially screen investments based on a top-down analysis, since most vessel owners are subject to market pricing. GASS' niche in the Handysize LPG market is one of the few sectors of shipping with strong demand fundamentals (mid-single digit demand growth) as well as modest fleet expansion (net fleet growth below 3% per annum through 2014). Demand will be driven by increased LPG exports in the Middle East as well oncoming US exports, with upside potential from Australian and African projects." StealthGas closed on Wednesday at $9.82.