UPDATE: Citi Lowering Price Target On Genco Shipping & Trading

Citi Investment Research is out with a research report on Genco Shipping & Trading Ltd. GNK and is lowering its price target to $5 from $7.50, and it has a Sell/High Risk rating on shares. In a note to clients, Citi Investment Research writes, "We are lowering our 2Q11, 2012 and 2013 EBITDA estimates 2%, 9% and 6%, from $61 million, $209 million and $218 million, to $59 million, $190 million and $205 million, respectively, as drybulk rates experienced significant weakness during 2Q11 and we expect market fundamentals to remain soft driving lower rates in the out years. As such, we are reducing our price target to $5.00, from $7.50, as we are now applying a peak multiple to a lower 2012 trough EBITDA estimate. Our new price target is based on an 8.6x target multiple of our 2012 EBITDA estimate (excluding Baltic Trading), up from 7.6x previously, and at the high end of the company's historical trading range." Shares of GNK lost 10 cents yesterday to close at $6.44.