UPDATE: Stifel Initiates Coverage on Navios Maritime Holdings on Fair Valuation

In a report published Wednesday, Stifel analyst Benjamin Nolan initiated coverage on

with a Hold rating. In the report, Stifel noted, “We are initiating coverage of Navios Maritime (NM) with a Hold rating on the units as we believe they are fairly valued, trading at a 3% discount to our current sum-of-the-parts valuation of $7.69 per share. Furthermore, although we believe the dry bulk market, which comprises the majority of NM's market exposure, is moving more toward a sustained rebalancing of supply and demand that should result in strong average charter rates, we estimate the rebalancing is unlikely to occur until late 2014. However, Navios Holdings is a market leader with strong cash flows and balance sheet strength, which should enable the company to position itself as a leading participant in the acquisition of distressed assets as well as the eventual cyclical recovery in the dry bulk market.” Navios Maritime Holdings closed on Tuesday at $7.48.