Morgan Stanley (NYSE:MS) likes what they see with DryShips (Nasdaq:DRYS), upgrading them to "Equal Weight."
Morgan said they would have upgraded them to "Overweight" if they took care of several issues.
First there is the financing of four new vessels which are sitting without contracts. If DryShips were to sell a couple of drillships, Morgan said that would help solve that problem by lowering the debt from the capital raised.
A continuing $350 million at-the-market offering and $700 million in convertible notes, along with a $300 million convertible preferred offering has the potential to increase the dilution of the shares.
DryShips closed Monday at $4.47, gaining $0.35, or 8.36 percent. Morgan Stanley has a price target of $5.50 on them.
No comments:
Post a Comment