UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on DryShips

In a report published Monday, Deutsche Bank reiterated its Hold rating on DryShips DRYS, but slightly lowered its price target from $2.50 to $1.50. Deutsche Bank noted, “DRYS reported adjusted Q3 EPS of a loss of $0.09, below our estimated loss of $0.05 and a Consensus loss of $0.02. DRYS' lower than expected results were primarily driven by higher rig operating expenses and interest expense. DRYS' adjusted EPS excludes $16.8 million ($0.04/share) in rig special survey costs, $18.3 million ($0.05/share) in non-cash debt write-offs and a $3.7 million ($0.01/share) non-cash gain on swaps (excludes minority interest adjustments). We lower our price target to $1.50 from $2.50 and maintain our Hold rating given the uncertainty of its newbuilding orders, debt concerns, but strong value from its majority interest in Ocean Rig (ORIG, Buy, $14.87).” DryShips closed on Friday at $1.70.