Week 46: Deutsche Bank Reduced Teekay Tankers’ Target Price
In week 46, which ended on November 17, 2017, Deutsche Bank reduced the target price for Teekay Tankers (TNK) to $2 from $5.
On November 16, 2017, the average bunker fuel price was $407 per ton—compared to $417 per ton on November 9, 2017.
According to Weber’s week 46 report, VLCC rates largely remained range bound. In week 46, 16 VLCC fixtures were recorded in the Middle East market.
In week 46, which ended on November 17, 2017, the BDTI rose from 803 to 809. In week 45, it fell by 40 points.
On November 13, 2017, Deutsche Bank reduced the target price for Teekay Tankers to $2 from $5.
In the third quarter conference call, Teekay Tankers (TNK) gave updates on TNK’s merger with Tanker Investments (TIL).
Teekay Tankers (TNK) generated a net operating cash flow of $66.9 million in the first nine months of 2017, which was 63% lower than the $180.6 million in the same period last year.
Teekay Tankers’ (TNK) central cash costs include voyage expenses and vessel operating expenses.
According to Teekay Tankers, freight rates have improved in the early part of the fourth quarter.
In its third quarter conference call, Teekay Tankers (TNK) gave insights on the tanker market, how it fared in the third quarter, and the outlook for the coming quarters.
Teekay Tankers’ (TNK) revenue fell to $72.9 million in 3Q17 from $89.3 million in the previous quarter.
The 12-month consensus target price for Frontline is $6.2. Compared to the current market price, the target price implies a potential upside of 7.5%.
Frontline’s EPS is expected to fall in 3Q17. Wall Street analysts expect an EPS of -$0.12—compared to $0.11 in 3Q16.
Analysts expect a net revenue of $92.3 million for Frontline (FRO) in 3Q17—compared to $150 million in the previous quarter and $57 million in 3Q16.
Frontline (FRO) is scheduled to release its 3Q17 results on November 22, 2017. Among its peers, Frontline is one of the last to release its 3Q17 earnings.
In week 45, which ended on November 10, 2017, Teekay Tankers’ (TNK) target price was cut to $1.3 from $1.6 by Bank of America Merrill Lynch.
On November 10, 2017, the average bunker fuel price was $417 per ton—compared to $398 per ton on November 3, 2017.
According to Weber’s week 45 report, VLCC rates for the route from the Arabian Gulf to China rose to $30,224 per day on November 10, 2017.
In week 45, which ended on November 10, 2017, the BDTI fell to 803 from 843. In week 44, it fell by 71 points.
On November 7, 2017, Morgan Stanley reduced the target price for Nordic American Tankers to $5 from $6.5.