UPDATE: JP Morgan Initiates Diana Shipping at Neutral; Valuation Nearly Full

JP Morgan initiated coverage on Diana Shipping

with a Neutral rating and a $9.50 price target. JP Morgan said, "DSX offers defensive qualities that yielded relative outperformance during the prolonged (and ongoing) drybulk market downturn. With management's shift to somewhat shorter duration time charters, exposure to an eventual upturn is lifted. However, at this time, the market appears to be already discounting a healthy degree of recovery in a still uncertain market (our $9.50 PT implies modest c.12% upside). We initiate coverage with a Neutral rating and recommend adding to positions on material pullbacks." Diana Shipping closed at $8.35 on Monday.