In J.P. Morgan's Dry Bulk Shipping Preview, Diana Shipping Is Rated Overweight

J.P. Morgan is updating its 3Q10, full-year 2010, and full-year 2011 EPS estimates for the dry bulk shipping companies to reflect its new rate forecasts highlighted in the dry bulk industry 3Q10 preview note also published this morning.

“We rate Diana Shipping, Inc. (NYSE: DSX) shares Overweight as we believe that DSX remains one of the best positioned dry bulk shipping companies under our coverage to withstand the strong volatility in the dry bulk physical markets that we forecast for the next several quarters,” J.P. Morgan writes. “In addition, we believe that DSX is well positioned to potentially take advantage of weaker asset prices given its industry-low financial leverage and its expanding cash balance.”

Diana Shipping, Inc. closed Friday at $13.65.