Analyzing the Crude Tanker Industry's Performance in Week 18

(Continued from Prior Part)

Changes in analysts’ recommendations

From May 1 to May 10 there have been many changes in analysts’ target prices for crude tanker companies. Investors can read about these changes below.

Frontine

Sparebank 1 Market initiated coverage on Frontline (FRO). It gave Frontline a “sell” rating with a target price of $7.48. Fearnley Securities downgraded the company to “sell” from “accumulate.” It reduced the target price to $5.49 from $8.67.

Nordic American Tanker

One more downgrade came in for Nordic American Tankers (NAT). It was downgraded by Drewery Financial Services in week 15. Now, Jefferies downgraded it to “underperform” from “hold.” It reduced the target price to $10 from $12. On the other hand, Evercore increased its target price to $13.5 from $12.5. It maintained its “hold” rating.

Teekay Tankers

Fearnley Securities downgraded Teekay Tankers (TNK) from “accumulate” to “sell.” It pulled down the target price to $2.7 from $4. Seaport Global Securities initiated coverage on the company. It set its target price to $6 with a “buy” rating.

Tsakos Energy Navigation

Tsakos Energy Navigation (TNP) is the only crude tanker company that all of the analysts covering the stock gave a “buy” rating. Although all of the analysts still maintain a “buy” rating, UBS lowered its target price to $7.5 from $8.

DHT Holdings

Like Frontline and Teekay Tankers, Fearnley Securities also lowered its rating from “accumulate” to “reduce” for DHT Holdings. It lowered its target price from $6.5 to $5.2. DNB Markets reduced the target price to $5.8 from $6.6. On the other hand, Evercore increased the target price to $10 from $9.5

Euronav

Fearnley Securities also pulled down its rating on Euronav (EURN) to “sell” from “reduce.” It lowered its target price to $8.2 from $10.

Consensus ratings

After looking at the changes in analysts’ estimates in week 18, we’ll look at consensus analysts’ recommendations.

• Nordic American Tankers – 29% of the analysts gave the company a “buy” recommendation, 57% gave it a “hold,” and 14% gave it a “sell.”

• Teekay Tankers – 60% of the analysts gave the company a “buy” recommendation, 33% gave it a “hold,” and 7% gave it a “sell.”

• DHT Holdings – 67% of the analysts gave it a buy recommendation, 22% gave it a “hold,” and 11% gave it a “sell.”

• Frontline – 30% of the analysts gave it a “buy” recommendation, 50% gave it a “hold,” and 20% gave it “sell.”

• Euronav – 77% of the analysts gave the company a “buy” recommendation, 18% gave it a “hold,” and 5% gave it a “sell.”