Goldman Sachs downgrades STX Pan Ocean (GZ9.SG, 028670.SE) to Sell from Neutral as the company is the most leveraged to weak bulk spot rates within the bulk shipping sector.

“Furthermore, we think there is execution risk on diversification from its core bulk shipping business, hampering earnings recovery. Aggressive expansion in fleet also heightens the risk of over-investment.”

The house cuts its Singapore target price to $11.30 from $17.40 and its Korean target to KRW9,600 ($10.93) from KRW15,100, based on 1.35x 2011 EV/FV. It also lowers 2010-2012 EPS estimates to US$0.37 (49 cents), US$0.76 and US$1.43 from US$0.42, US$1.13 and US$1.37 respectively.

Shares flat at $13.22.