AmericasDry Cargo

Morgan Stanley gives dry bulk a shave

Oslo: Dry cargo shares have had their price target shaved by the American finance house Morgan Stanley. Hardest hit is Scorpio Bulkers who have lost over 80% of their market value since last year. The company is particularly hard hit as it has the largest orderbook with delivery of 42 newbuildings set for 2015.

Scorpio Bulkers has seen its price target nearly halved from  $ 10 to $5.50 per share.

Also the Oaktree-controlled Star Bulk, an amalgamation of the three dry bulk companies Excel Maritime, Ocean Bulk and Star Bulk, got a lower rating from Morgan Stanley, dropping from $7 to $5.

Among the weakest dry bulk shipping companies on Wall Street is heavily indebted DryShips whose stock is currently trading at less than $1. Morgan Stanley reduced its price target on the George Economou-led firm from  $1.70 to $0.98 per share.

Others who were whacked by Morgan Stanley included Navios Maritime Partners ,Knightsbridge Shipping and Baltic Trading.

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.
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