UPDATE 1-Dahlman maintains positive view on dry bulk, ups Navios

June 15 (Reuters) - Dahlman Rose & Co raised its rating on Navios Maritime Holdings Inc (NM.N) to "buy" from "hold," based on its year-end net asset value for the Greek dry bulk carrier and said it was increasingly confident in a sustained dry bulk market rebound.

The brokerage reiterated its "positive" outlook on the drybulk sector and said increased demand for steel would lead to a rise in freight rates.

"Charter rates have been supported this year mainly by strong Chinese steel demand and now there are signs that international steel mills will play a bigger role in the iron ore, coal and freight markets," analyst Omar Nokta wrote in a note to clients.

The analyst said dry bulk carried substantial optionality on an improveing steel market and would benefit from price and production increases this month by steel majors like ArcelorMittal (ISPA.AS), U.S. Steel Corp (X.N), Nippon Steel Corp (5401.T) and others.

Additionally, strong iron ore markets in China were complemented by recent increased spot coal activity into the country, Nokta said.

"We have also noted signs of improving Japanese demand as several Panamax coal cargoes have been booked in recent days due to improved coking coal demand for steel production," Nokta said.

Nokta also raised his price targets on Diana Shipping Inc (DSX.N), Eagle Bulk Shipping Inc (EGLE.O) and Genco Shipping and Trading Ltd (GNK.N). [ID:nWNAB9717]

"While most stocks have limited exposure to improving freight rates in the near-term, we believe increasing asset values will put them in stronger standing with their creditors and enhance their loan-to-value position," Nokta said.

Shares of Navios Maritime were trading at $4.61 Monday morning on the New York Stock Exchange. (Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))