All Systems Go: Analysts Downgrade Navios Maritime Partners L.P. (NMM) And Sunedison Semiconductor Ltd (SEMI)

Wall Street analysts made changes to ratings today on shipping and logistics firm Navios Maritime Partners L.P. (NYSE:NMM) and silicon substrate maker Sunedison Semiconductor Ltd (NASDAQ:SEMI). Below are the changes along with current price targets and comments.

Navios Maritime Partners L.P.

Deutsche Bank analyst Amit Mehrotra downgraded shares of Navios Maritime Partners from a Buy to a Hold rating, while slashing the price target to $1.25 (from $6.00), following the company’s fourth-quarter financial results, where the company announced the suspension of quarterly cash distributions to its unitholders.

Mehrotra observed, “The move reflects management’s surprising announcement this morning to suspend entirely its cash distribution of 85c per share, which was already cut last Q by 50%. The move represents a significant about-face for the company given its comments in 3Q, where it highlighted its then 1.7x coverage and chartering strategy as supportive of the revised distribution “for the next five years.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Mehrotra has a yearly average return of -21.4% and a 23.8% success rate. Mehrotra has a -72.2% average return when recommending NMM, and is ranked #3541 out of 3600 analysts.

Out of the 4 analysts polled by TipRanks, 3 rate Navios Maritime Partners stock a Hold, while 1 rates the stock a Buy. With a return potential of 350%, the stock’s consensus target price stands at $6.75.

Sunedison Semiconductor Ltd

In addition, Goldman Sachs analyst Toshiya Hari downgraded Sunedison Semiconductor from Neutral to Sell, with a $5 price target, which represents a slight upside potential from current levels.

Hari explained, “We downgrade SunEdison Semiconductor on 1) 85% fundamental value (4x 2016E EV/EBITDA) and 2) 15% M&A value (5.5x 2016E EV/EBITDA). We see 13% downside vs 10% average upside for our coverage. We would recommend investors be cautious on SEMI, even after significant stock price underperformance in 2015 (-58%), given poor supply-demand dynamics (i.e., pricing risk) in silicon wafers and potential competitive challenges from a strengthening US$. We are 5.7%/34% below consensus 2016 revenue/EBITDA estimates.”

Out of the 3 analysts polled by TipRanks, 1 rates Sunedison stock a Buy, 1 is neutral, and 1 rates the stock a Sell. With a return potential of nearly 133%, the stock’s consensus target price stands at $13.33.



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