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Why Shares of Navios Maritime Holdings Inc. Jumped Today

By Travis Hoium – Mar 6, 2014 at 9:59AM

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Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Navios Maritime Holdings (NYSE: NM) jumped 10% briefly this morning after being upgraded by an analyst.

So what: Analysts at Stifel Nicolaus upgraded the stock to a buy and raised their price target to $14. Shares are currently trading for about $11.30 so that indicates about a 24% upside from the current price.  

Now what: The reason given for the more bullish rating is improved demand for Capesize vessels. It's true that rates are up in recent months but there's not a full-fledged recovery from oversupply and weak demand after the recession. This is still early in the recovery and prices are volatile so investors need to know that this is a high-risk bet in Navios Maritime today.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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