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Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says Analyst

Taking the term penny stock to a whole new level, we have Seanergy Maritime (SHIP). Shares are going for $0.12 apiece following another year of massive share price depreciation. The stock is down by 78% so far in 2020. Zoom out by five years and add in bouts of shareholder dilution, and the stock is only 0.25% away from a 100% decline.However, not all hope is lost. In fact, Maxim analyst Tate Sullivan remains firmly in the shipping company’s corner.Sullivan has a Buy rating on Seanergy based on his “outlook for SHIP to use recent equity proceeds to reduce and/or extend debt maturities, as well as our forecast for an eventual rebound in international shipping activity and higher rates.”Having said that, the decline in shipping rates means the price target is reduced from $0.40 to $0.30. Despite the trim, the potential upside from current levels is a lofty 120%. (To watch Sullivan’s track...