DryShips Inc. (NasdaqGS: DRYS) shot up more than 8.00% after Goldman Sachs upgraded the the company to a “buy” rating. However,the shipping-related exchange traded fund (ETF) remains rather indifferent to the news.
Guggenheim Shipping ETF (NYSEArca: SEA) is currently down 0.2%. DRYS makes up 2.07% of the fund’s holdings.
Goldman Sachs raised DryShips from “neutral” rating and increased the company’s price target to $6 from $5.50 due to what Goldman believes to be an “attractive” valuation, according to Dow Jones Newswires.
Goldman also states that the shipping company is “underestimated” by the markets and that there is “positive risk/reward ahead of the upcoming listing” of an Ocean Rig unit in the U.S.
However, the overall industry remains oversupplied with dry bulk ships, which one reason why Goldman Sachs downgraded Diana Shipping (NYSE: DSX) from “buy” to “neutral”.