UPDATE: Imperial Capital Initiates Coverage on DryShips on Good Potential Upside
In a report published Thursday, Imperial Capital analyst Andrew Casella initiated coverage on DryShips (NASDAQ: DRYS) with an Outperform rating and $2.75 price target.
In the report, Imperial Capital noted, “We are initiating coverage on shares of DRYS with an Outperform rating and a one-year price target of $2.75. We see potential 34% upside to our $2.75 price target driven by potentially significant price appreciation of ORIG equity to our estimated valuation range of $21-31 per share on the commencement of a dividend program and/or formation of an MLP, and the subsequent removal of the ‘overhang' related to investors' concerns about DRYS near-term maturities and overall liquidity levels through a likely successful exchange offer and amend and extend of the company's credit facilities.”
DryShips closed on Wednesday at $2.05.
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