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Behind Analysts’ High Estimates for Tsakos

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Analyst estimates

Tsakos Energy Navigation (TNP) currently operates a total fleet of 50 tankers and has 15 tankers under construction, giving it a total fleet of 65 vessels. Out of these 15, seven newbuilds are expected to join the fleet in 2016, while others will join in 2017. The new tankers are expected to contribute significantly to TNP’s revenue.

Wall Street analysts also expect the company’s revenue to come in at $496 million in 2016, which would mean a 9% increase from the $455 million it saw in revenue in 2015. For 2017, analysts estimate a revenue jump to $575 million for TNP, estimating a spike in the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) as well.

The EBITDA estimate for 2016 stands at $310 million—a 6% increase from 2015’s EBITDA of $292 million. In 2017, the EBITDA estimate from the Street stands at $354 million.

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Recommendations for TNP

Wall Street analysts have a 12-month price target of $10.67 for Tsakos Energy Navigation (TNP) compared to its current price of $6.70 as of March 17, 2016. Among the analysts, 12 gave recommendations on the company’s stock as of the same date, and TNP is the only company among peers for which 100% have issued “buy” ratings, according to the Bloomberg consensus.

Analyst recommendations for TNP’s peers

By comparison, Teekay Tankers (TNK) has “buy” ratings from 57% of analysts covering the stock. It has “sell” ratings from 14% of analysts and “hold” ratings from 28% of analysts. By comparison, Euronav (EURN) has 85% “buy” ratings and 14% “hold” ratings.

DHT Holdings (DHT) has 82% “buy” recommendations, and the remaining 18% of analysts gave it a “hold” recommendation. Frontline (FRO) has the fewest number of “buy” ratings at 44%, with 44% of analysts giving it a “hold” rating and the remaining 11% calling a “sell.”

For related analysis, keep checking in with Market Realist’s Energy and Power page.

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