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UPDATE: Dahlman Rose Downgrades Overseas Shipholding Group to Sell on Uncertainty

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Dahlman Rose lowered its rating on Overseas Shipholding Group (NYSE: OSG) from Hold to Sell and introduced a $0.50 price target as a tax interpretation issues violates loan covenants.

Dahlman Rose noted, "We are downgrading OSG shares to Sell due to uncertainty regarding the company's financial statements and credit facility going forward. … We believe that there is value in OSG's Jones Act business worth at least $500 million in a low-case scenario and $800 million in our high case. We had thought a potential sale of some or all of these assets could have helped OSG avoid bankruptcy, but note a strongly negative impact on future EBITDA if these assets were removed from OSG's fleet. At this point, we believe too much uncertainty regarding Chapter 11 exists and, thus, downgrade to Sell."

Overseas Shipholding Group closed at $1.23 on Monday.

Latest Ratings for OSG

May 2014Imperial CapitalDowngradesOutperformIn-Line
Apr 2014Imperial CapitalUpgradesUnderperformOutperform
Nov 2012Deutsche BankTerminates

View More Analyst Ratings for OSG
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Posted-In: Dahlman RoseAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings


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