Market Overview

Deutsche Bank Upgrades Star Bulk To Hold


In a report published Monday, Deutsche Bank analyst Amit Mehrotra upgraded the rating on Star Bulk Carriers Corp. (NASDAQ: SBLK) from Sell to Hold, while raising the price target from $2 to $3, following meeting with the management that offered a better view of the company's cash position.

"Our upgrade reflects three key points: (1) Post the recent sell-off shares now appear to better discount headwinds associated with the dry bulk market; (2) Mgmt. has taken proactive (& painful) steps to shore up its cash position, and; (3) We are becoming more constructive on dry bulk as sentiment and valuation appear at trough levels," Mehrotra explained.

The analyst believes that the company is currently well positioned to cope with a prolonged downturn without having to resort to additional dilutive financing, following Star Bulk's equity raise in January and May.

"Even after assumptions for prospective cash burn for the remainder of '15 and debt repayment this year and next, we estimate SBLK will have $285M of truly "excess" cash in 2016, which in the context of 27,000 operating days provides more-than-enough cushion, in our view," the Deutsche Bank report said.

At the same time, the analyst cautioned that the company continues to face significant challenges due to its large on-the-water fleet, which leads to considerable cash flow, and capital commitments related to its newbuilding book. The analyst also expects the stock to remain range bound till there is an improvement in the rate environment.

Latest Ratings for SBLK

Jul 2020DnB MarketsUpgradesHoldBuy
Mar 2020DNBDowngradesBuyHold
Jan 2020FearnleysDowngradesBuyHold

View More Analyst Ratings for SBLK
View the Latest Analyst Ratings


Related Articles (SBLK)

View Comments and Join the Discussion!

Posted-In: Amit Mehrotra Deutsche BankAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at