Currently, 12 analysts are covering Navios Maritime Partners (NMM). Out of them, two analysts have “buy” recommendations, seven have “hold” recommendations, and three have “sell” recommendations.
In comparison, Scorpio Bulkers (SALT) has “buy” ratings from 77% of the analysts covering the stock. Ship Finance International (SFL) has “buy” ratings from 75% of its analysts and no “sell” ratings. Navios Maritime Holdings (NM) has “buy” recommendations from 63% of its analysts and “sell” ratings from 12% of analysts. The Yorkville High-Income MLP ETF (YMLP) has 6% of its holdings in Navios Partners.
J.P. Morgan, which had an initial rating on Navios Partners in September 2015 of “underweight,” upgraded it to “neutral” and raised the target price to $6 from $5 after its 3Q15 results release. J.P. Morgan believes that the stock’s further downside is limited.
Morgan Stanley upgraded NMM to “equal-eight” from “underweight.” It believes NMM’s current distributions can be sustained until at least the end of 2017.
Deutsche Bank, on the other hand, maintained its “buy” rating, but cut its target price from $15 to $8.50, reflecting the lower distribution yield. Clarksons Platou Securities cut its target price from $9 to $6 while maintaining its “neutral” rating.
In a note released on November 4, Wells Fargo maintained its “underweight” rating while cutting its target price range from $8–$10 to $5–$6.50.
Bank of America Merrill Lynch reiterated its “underperform” rating while cutting the target price to $6 from $10. The firm remains cautious on the dry bulk shipping outlook given the supply and demand dynamics.
Most of the analysts are of the view that after the current distribution cut and corresponding stock price decline, Navios Maritime’s (NMM) stock is more accurately valued and reflects the current weak dry bulk fundamentals. These analysts also believe that the downside from here should be limited.
To learn more about this industry, please visit our Dry Bulk Shipping page.