Deutsche Bank Reiterates Hold Rating on Capital Products Partners (CPLP)

Deutsche Bank is out with a research report this morning, where it reiterates its Hold rating on Capital Products Partners CPLP; it has a $9.00 price target on the stock. The DB analysts cited the company's recently announced quarterly earnings report, which was below estimates on EPS, though beat on revenues. They noted that higher-than-expected voyage and vessel expenses more than offset higher revenue. They added, “While CPLP trades at a high dividend yield, the weak tanker rate environment may provide a headwind for re-charters into Q1 2011, as such, we believe CPLP's risk reward is balanced at the current valuation.” Their price target is based on a 10x 2011 EV/EBITDA estimate of $76 million.