Overseas Shipholding "buy," target price reduced

04/09/09 - Lazard Capital Markets

NEW YORK, April 9 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on Overseas Shipholding Group (OSG), while reducing their estimates for the company. The target price has been reduced from $60 to $48.

In a research note published this morning, the analysts mention that the company’s near-term performance is expected to be negatively impacted by the sharp decline in the spot prices for refined petroleum product tankers. Overseas Shipholding would, however, witness a gradual improvement in product tanker rates over the next two months, the analysts add. The company is well capitalized and capable of maintaining its dividend in the near future, Lazard Capital says.