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Shipping stocks hit high tide as investors react to prominent upgrade, industry consolidation

JP Morgan initiated coverage of Navios Maritime Containers with a bullish rating, meanwhile Capital Product Partners merged with Diamond S Shipping

A rising tide lifted all boats in the shipping sector Wednesday after JP Morgan’s coverage of Navios Maritime Containers LP (NASDAQ:NMCI) set sail with an Overweight rating. Noah Poponak issued a price target of $9, according to StreetInsider, more than quadruple Tuesday’s close.

The Monaco-based shipping company skyrocketed nearly 40% to $2.71, and the effects rippled throughout the sector.

Also making waves was a $1.65 billion merger between privately-held Diamond S Shipping and Greek shipper Capital Product Partners LP (NASDAQ:CPLP).

Their combined fleet will consist of 68 tankers, making it the fifth-largest public tanker company in the world. The new company is expected to begin trading on the NYSE under the name Diamond S Shipping Inc, per The Maritime Executive.

The sector responded well to the consolidation.

Globus Maritime Limited (NASDAQ:GLBS) rose 12% to $3.70.

EuroDry Ltd (NASDAQ:EDRY) edged up 2.8% to $9.25.

Navios Maritime Holdings Inc (NYSE:NM) jumped 25% to $2.65.

Seanergy Maritime Holdings Corp (NASDAQ:SHIP) was a rare shipper with its stock under water, falling 9% to drop anchor at $4.94.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel