- Diana Shipping (DSX -5.7%) and Navios Maritime Partners (NMM -2.6%) are lower after J.P. Morgan downgrades shares of both dry bulk carriers to Neutral from Overweight ahead of a cycle peak the firm expects later this year or in early 2019.
- The firm says DSX's low risk profile limits upside potential vs. more spot-oriented companies, and it is concerned about the company's economic exposure to container shipping through its loans to Diana Containerships (DCIX +3%).
- JPM says its NMM downgrade is based primarily on valuation, as the company enjoys positives such as low leverage, relatively higher charter coverage, low cost basis and diversification into the containership sector through long-term charters.