- The merger of Baltic Trading (NYSE:BALT) and Genco Shipping (OTCPK:GSKNF) will create another powerhouse in the drybulk sector and makes sense in several ways, GMP Securities analyst Magnus Fyhr as he maintains a Buy rating and $3 price target on BALT.
- Fyrh says the fleet of the combined company will increase to 68 ships - plus two scheduled to be delivered in 2015 - which would rival the recent combinations of Star Bulk Carriers (NASDAQ:SBLK) with 98 ships and Golden Ocean Group (NASDAQ:GOGL) with 77 ships.
- Also, Genco already provides BALT with fleet management services, BALT's liquidity issues will be addressed by Genco's more robust balance sheet, and Genco will gain access to BALT's listing on the NYSE.