Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Square (SQ) downgraded to Sell from Hold at Craig-Hallum with analyst Brad Berning saying investors should use the company's easier comps in the first half of 2018 to take profits ahead of tougher comps in the second half of the year. 2. Paycom (PAYC) downgraded to Hold from Buy at Stifel with analyst Brad Reback saying he does not expect shares to outperform over the next twelve months, despite viewing Paycom as a leading mid-market human capital management provider and believes shares "deserve" to trade at some premium to Ultimate Software (ULTI) and Paylocity (PCTY) given modestly-higher growth and significantly-higher operating margin. 3. Buckeye Partners (BPL) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Tom Abrams citing the recent FERC ruling on cost of service pipelines. 4. Micron (MU) downgraded to Neutral from Buy at Citi with analyst Christopher Danely saying he sees downside risk to consensus estimates with NAND prices falling and believes the stock's current risk/reward profile no longer warrants a Buy rating. 5. Navios Maritime (NM) and Navios Maritime Midstream (NAP) were downgraded to Underweight from Neutral at JPMorgan. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Navios Maritime downgraded to Underweight from Neutral at JPMorgan. JPMorgan analyst Noah Parquette downgraded Navios Maritime Holdings to Underweight without a price target. The rating change is part of the analyst's rebalancing of his Maritime coverage.
Navios Maritime Containers, a newly formed Marshall Islands company, announced that it has agreed with investors to sell approximately 15 million of its shares for an aggregate of approximately $75 million of gross proceeds at a subscription price of $5.00 per share. Navios Containers intends to use the proceeds to acquire the 14-vessel container fleet that Navios Maritime Partners L.P.previously agreed to purchase from Rickmers Maritime as well as for further vessel acquisitions, working capital and general corporate purposes. Navios Partners will invest $30 million and receive 40% of the equity, and Navios Maritime Holdings (NM) will invest $5 million and receive 6.67% of the equity of Navios Containers. Each of Navios Partners and Navios Holdings will also receive warrants, with a five-year term, for 6.8% and 1.7% of the equity, respectively.
Navios Maritime announced that it executed, for itself and/or for its affiliates, an exclusivity agreement and term sheet to purchase directly or indirectly, 100% of FSL Asset Management Pte. and not less than a total of 50.1% of First Ship Lease Trust from an existing shareholder and FSL Trust. FSL Trust is listed on the Mainboard of the Singapore Exchange Securities Trading Limited. FSL Trust is a Singapore-based business trust which owns a diversified fleet of 22 modern and high-quality oceangoing vessels (the "Fleet"). The Fleet includes 12 product tankers, three chemical tankers, two crude oil tankers and five container vessels. The FSL Trust Fleet is a natural fit for the 170+ vessel diversified fleet controlled by Navios, which includes dry bulk and container vessels as well as crude and product tankers. The acquisition is subject to a number of conditions, including the satisfactory restructuring of the existing mortgage debt and other loan facilities of FSL Trust, waiver by the Securities Industry Council of any obligation for Navios to make a mandatory take-over offer for all the units in FSL Trust and approval of FSL Trust's independent unitholders of the Whitewash Waiver. No assurance can be provided that these conditions will be satisfied and that any acquisition will be concluded. The Parties have agreed to negotiate exclusively with each other and will seek to execute definitive agreements by September 30.