Eagle cut to sell

A Cantor Fitzgerald analyst cut her rating on Eagle Bulk Shipping to "sell" Friday as the New York supramax owner's cost and profits outlook dimmed.

As she downgraded Eagle's Nasdaq-listed stock from "hold", analyst Natasha Boyden cited Eagle's recently released expectation of $34.5m in general and administrative expenses for last year.

Eagle Bulk's 52,800-dwt Heron (built 2001)

She also noted a number of new bulker charters ranging from $8,500 to $10,500 per day.

"While we remain optimistic about Eagle's long-term chartering strategy and niche in the supramax sub-sector, we are increasingly concerned about the company's high level of debt and reduced profitability in a significantly weaker dry-bulk market environment," Boyden said in a note to clients.

She also cut her price target from $6 to $4, and dropped her 2009 earnings forecasts from $0.90 to $0.71 per share.

Other analysts remained more optimistic about Eagle's prospects after the company unveiled 2008 revenue and expense forecasts Thursday, as well as the new charters. (Read about the announcement here.)

Maxim Group's Charles Rupinski lowered his price target for Eagle's stock from $18 to $13, but he still is calling the stock a "buy".

"We believe that the company could be revalued in a better dry-bulk rate environment," he wrote.

Led by Sophocles Zoullas, Eagle Bulk owns 22 handymax and supramax bulkers, and it has orders for 24 more supramaxes.

Eagle's shares plunged by 14.7% to $5.41 following Boyden's downgrade.

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