Deutsche Bank says shares of Diana Shipping can more than double over the next two years with "little" downside risk following the 50% underperformance relative to the S&P 500 Index over the last 12 months. Just below 50% of Diana's market capitalization is held in cash by the company while its shares trade at a 30% discount to tangible book value, Deutsche analyst Amit Mehrotra tells investors this morning in a research note. Investors are focusing on the weak dry bulk market while ignoring Diana's value creation opportunities, "best-in-class" management team and "underleveraged" balance sheet, Mehrotra writes. The analyst raised his price target for shares to $10.50 from $8 and keeps a Buy rating on the name. Shares of Diana Shipping closed Friday up 6c to $6.46.

Diana Shipping has entered into a time charter contract with Bohai Shipping Co., Ltd, for one of its Capesize dry bulk vessels, the m/v P. S. Palios. The gross charter rate is $27,150 per day, minus a 5% commission paid to third parties, for a period until minimum November 1, 2025 up to maximum December 31, 2025. The charter is expected to commence on May 12, 2024. The "P. S. Palios" is a 179,134 dwt Capesize dry bulk vessel built in 2013. The employment of "P. S. Palios" is anticipated to generate approximately $14.39 million of gross revenue for the minimum scheduled period of the time charter.