DryShips To Enter Tanker Market

Jefferies & Company has published a research report on DryShips, Inc. (NASDAQ: DRYS) after the company announced that it would be entering into the tanker market.

In the report, Jefferies writes "Late last week, DryShips announced that it was entering the crude tanker shipping market by purchasing 6 newbuild Suezmaxes and 6 newbuild Aframaxes to be delivered between 2011 and 2013 with plans to either spin-off or IPO the tanker assets in 2011. While DryShips has made significant progress in shoring up its capital needs in recent months with a $350 million share offering and the sale of a 22% interest in Ocean Rig for $500 million, we believe DRYS shares are fairly valued despite trading at a discount to the peer group."

Jefferies maintains its Hold rating and $6 price target.

DryShips Inc. closed yesterday at $5.55.