By Sam Boughedda
Jefferies upgraded tanker stocks Euronav (NYSE:), Frontline (NYSE:), Nordic American Tanker (NYSE:), and Tsakos (NYSE:) to Buy in a note on Tuesday, telling investors that the outlook is strengthening.
An analyst also boosted the firm’s price targets on the stocks, with Euronav raised to $20 from $14, Frontline increased to $16 from $11, Nordic American lifted to $4 from $3, and Tsakos price target lifted to $25 from $12.
“We upgrade our outlook and reiterate our positive view on tankers. Spot rates have held firm across most segments over the past six months and VLCCs have finally joined the fray. The Russia-Ukraine war has impacted trade flows and tanker routes, but it also brought to the forefront the underlying tightness of the oil market, inducing higher production and refinery runs, benefiting tankers. We see strong earnings this winter and throughout 2023 & 2024,” wrote the analyst.
Speaking on the stocks, he explained they are positioned for “significant earnings and offer compelling free cash flow yields.”
“We have raised our 2023 and 2024 earnings projections for the group well-above consensus expectations,” he concluded.
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