Genmar upgraded

JP Morgan Securities hiked its rating on General Maritime's stock Tuesday as the bank's shipping analyst expressed renewed confidence in the tanker owner's ability to avoid dividend cuts.

"Dividend doubters are missing the boat," analyst Jonathan Chappell said in a note to clients.

Peter Giorgiopoulos

"With dividend cuts and suspensions littering the public shipping domain, we believe that the stocks of those companies that have been able to maintain their dividends since the onset of the shipping market collapse are being penalised as investors wait for the next shoe to drop," Chappell said.

But after spending time with General Maritime management, Chappell says he thinks the company can maintain its $2-per-share dividend in 2009 and 2010 unless an attractive acquisition opportunity comes along.

He pinned the confidence on the tanker owner's 77% contract coverage.

Led by Peter Georgiopoulos, General Maritime owns 31 double-hull crude and products tankers with a total carrying capacity of 4 million dwt.

The company's New York-listed shares gained 3.3% Tuesday to reach $8.25 in early-morning trading, as most other shipowners were in negative territory.

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