ShippingWatch

Deutsche Bank downgrades Star Bulk again

With a major newbuilding program and an already significant fleet on the water, listed Star Bulk is highly exposed to the weak dry bulk market, and like Scorpio Bulkers the carrier will need fresh capital, according to Deutsche Bank.

Photo: Star Bulk

US-based dry bulk giant Star Bulk will take delivery of 34 newbuildings over the next two years while already possessing a significant active fleet - and the New York-listed carrier is now being further downgraded, to just USD 2 per share, by Deutsche Bank, which also changes its recommendation from 'hold' to 'sell'.

"We are lowering our recommendation on shares of Star Bulk to Sell from Hold, and revising our price target to USD 2 from USD 5. The revision largely reflects an extremely weak spot rate market for dry bulk vessels, where average rates are hovering at USD 5,000 per day level on year-to-date basis (down 66 percent year on year), as well as our belief that a weak environment is likely to persist for at least the next 12 months," Deutsche Bank wrote in a report on the downgrade.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Further reading

Related articles

Latest news

See all jobs