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Crude Oil Tanker Stocks: Estimates, Recommendations for 2Q17

PART:
1 2 3 4 5 6 7 8 9 10 11
Part 3
Crude Oil Tanker Stocks: Estimates, Recommendations for 2Q17 PART 3 OF 11

No Analysts Are Bullish on Nordic American Tankers

High dividend, low risk

In this part of the series, we’ll look at analyst recommendations for Nordic American Tankers (NAT), a crude oil tanker company that transports crude oil only in Suezmax vessels. The company follows a strategy of high dividend payouts and low financial risk.

No Analysts Are Bullish on Nordic American Tankers

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Consensus rating

According to Reuters, the consensus rating for Nordic American Tankers is 3.6, which means a “sell.” That rating has been constant since February 2017. Following are the consensus ratings for other crude oil tanker companies:

  • Teekay Tankers (TNK): 2.9, or a “hold”
  • Euronav (EURN): 2.2, or a “buy”
  • Frontline (FRO): 2.8, or a “hold”
  • Gener8 Maritime (GNRT): 2.0, or a “buy”

Consensus recommendations

Currently, nine analysts have given recommendations for NAT. A year ago, only six analysts were covering the stock. Since November 2016, the company has not had any “strong buy” or “buy” ratings. Of the nine analysts, 66.0% of them, or six analysts, have recommended a “hold” for NAT stock. One analyst has given the company a “sell,” and two have recommended a “strong sell.”

Consensus target price

Analysts have a consensus 12-month target price of $6.22 for NAT. That implies a potential upside of 2.1% from the market price of $6.08 as of July 7, 2017.

2Q17 tanker rates are lower

The second quarter of 2017 has just ended. In mid-June, Nordic American Tankers’ management said in a conference call that crude oil tanker rates in the second quarter will be lower than the first quarter. In the next part of this series, we’ll see how Wall Street analysts view NAT’s revenue and EBITDA (earnings before interest, tax, depreciation, and amortization) for 2Q17 in this weak tanker market.

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