Deutsche Bank equity analyst Amit Mehrotra is keeping a “buy” rating on New York-listed Scorpio Bulkers despite concerns over the company’s loan renegotiations and prospects for paying a dividend.
Mehrotra said in a client note today that he is comforted by the level of equity on Scorpio’s balance sheet despite his misgivings over management’s strategic tack.
“After significant new equity and asset sales, the balance sheet is now over-equitized, in our view, which limits risks,” Mehotra writes.
