- DryShips (NASDAQ:DRYS) +4.5% premarket after Imperial Capital upgrades shares to Outperform from Underperform with a $1.90 price target, up from $1.40,
- Imperial believes the risk of a near-term restructuring has been all but eliminated given the secondary equity offering and the equity dilution has largely been reflected in the share price.
- Although the secondary offering was priced punitively, the firm sees it as a necessity to foster a more sustainable capital structure given prospective refinancing needs through 2016 and to de-risk an over-levered balance sheet.