Some good news to came the way of Deutsche Bank analyst Amit Mehrotra this month may well turn out to be a positive for shipping as well.
Mehrotra is one of four equity analysts across the ranks of the German bank to be promoted to the title of “managing director”, the top research designation in the organisation, finance sources said this week.
'Good sign'
Because Mehrotra heads up Deutsche Bank’s shipping research — alongside other transport sectors such as trucking and rails — the elevation is viewed as an affirmation of maritime’s place in the bank’s industrial pecking order.
“The fact that DB [Deutsche Bank] is promoting their shipping analyst is a good sign for the sector and says something about DB’s commitment to the sector,” said one source familiar with the matter.
Mehrotra was not available for comment on the development this week. Sources said the promotion has not been announced publicly but has been communicated within Deutsche Bank.
What makes the recognition all the more significant is that only seven months ago, the future of Mehrotra and his shipping team at the bank appeared bleak.
Deutsche Bank was in the midst of a massive restructuring that ultimately would bring about 18,000 job cuts.
At one point, the fate of Mehrotra and his staff was said to be on “a coin flip”, meaning he could survive the purge or be relieved of his duties.
Arrows began to point in his favour in early July, but nothing was confirmed until 8 July, when Mehrotra sent a message to clients announcing that the shipping team would remain employed.
“While we are clearly undergoing significant transformation of our business model, one thing that is not changing is the importance that DB [places] on equity research," Mehrotra said in an email at the time. "To this end, my franchise remains firmly intact, along with the support of an institutional research sales infrastructure.”
Five names cut
The retention was also seen as being fuelled by the recognition of shipping as a core priority for lending and other bank functions, although the financial institution did cut five shipping names from its coverage.
In recent months, associate Chris Snyder has taken a larger role in shipping coverage. However, Mehrotra remains closely involved in day-to-day research of the sector despite his other duties across the transport sector.
Banks to have dropped all or part of their shipping coverage within the past year include Credit Suisse, UBS, Seaport Global Securities, the Maxim Group and fellow bulge-bracket firm Morgan Stanley.
