Sterne Agee Initiates Diana Shipping At Buy

Sterne Agee has published a research report on Diana Shipping, Inc. (NYSE: DSX) and has initiated coverage on the company with a Buy rating.

In the report, Sterne Agee writes "DSX's financial flexibility, ample cash balance and debt capacity put the company in pole position to capitalize on the coming weakness in the dry bulk market. After the BDI and secondhand vessel prices bounced back from their December 2008 lows, the BDI peaked in June 2009, and is now almost 60% below the June 2009 peak, while Capesize secondhand prices are down just about 10%, Panamax prices are roughly flat, and Supramax prices are actually above the June 2009 peak. DSX has been biding its time since then, hoarding its cash and waiting for the right opportunity to start buying assets on the cheap."

Sterne Agee has also issued a $15 price target on Diana Shipping, which closed yesterday at $12.52.