UPDATE: Stifel Reiterates On Scorpio Bulkers Following Private Placement Announcement

In a report published Tuesday, Stifel analyst Benjamin Nolan reiterated a Buy rating on Scorpio Bulkers (NYSE: SALT), but lowered the price target from $11.00 to $8.00.

In the report, Stifel noted, “Scorpio Bulkers announced a new $150 million stock private placement with certain institutional investors. The placement will consist of 40 million new common shares at a price of $3.75 per share. The proceeds will be used to help fund installment payments on the company's newbuilding program with the remaining used for general corporate purposes and working capital needs.”

Scorpio Bulkers closed on Monday at $3.90.