UPDATE: Wunderlich Securities Initiates Coverage On Paragon Shipping On Potential Material Upside

In a report published Monday, Wunderlich Securities analyst Nicholas J. Bender initiated coverage on

with a Hold rating and $5.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Paragon Shipping Inc. (PRGN) with a Hold rating and $5.00 price target. Paragon is a high-quality operator in the competitive and fractured dry bulk arena. After successfully managing through the downturn of the last super-cycle, the company has embraced its presence in a cyclical market. Management has pursued a strategy of aggressive exposure to dry bulk fundamentals by operating chiefly in the spot market and pursuing material fleet growth. With the dry bulk supply/demand dynamic poised to improve in late FY14 and FY15, Paragon could see material upside to both its earnings power and stock price. However, given a choppy near-term market outlook, we are initiating coverage with a Hold rating.” Paragon Shipping closed on Friday at $3.34.