Earlier in this series, we saw that crude tanker stocks gave mixed returns in the previous week. We also saw that fresh demand boosted the Suezmax rates but couldn’t lift VLCC rates. We discussed why bunker fuel prices rose last week. In this part, we’ll see how analysts revised the target prices for crude tanker companies followed by consensus recommendations.
In the previous week, Credit Suisse reduced the target price for Nordic American Tankers (NAT) to $6 from $7. Evercore downgraded Nordic American Tankers on July 21, 2017, from “inline” to “underperform.” It also reduced the target price to $5 from $6. Evercore’s analyst said, “the company will not be able to pay dividend for Q3 after a likely 50% cut for Q2 further pressuring the valuation premium.”
According to Reuters, nine analysts give recommendations on Nordic American Tankers. None of the analysts gave the company a “strong buy” or even a “buy” rating. Out of the nine analysts, five analysts recommended a “hold” on the stock, two analysts recommended a “sell,” and two analysts recommended a “strong sell.”
The consensus 12-month target price for Nordic American Tankers is $5.89, which implies a potential upside of 1.9% from the market price of $5.78 as of August 2, 2017.
On July 26, 2017, J.P. Morgan cut the target price for Navios Maritime Midstream Partners (NAP) to $9.5 from $10.
According to Reuters, four analysts gave recommendations on Navios Maritime Midstream Partners. Three analysts recommended a “hold,” while one analyst recommended a “sell.” The consensus 12-month target price on Navios Maritime Midstream Partners is $10.33, which implies a potential downside of 2.7% from the current price of $10.6 as of August 2, 2017. Nordic American Tankers and Navios Maritime Midstream Partners both have sell ratings. However, DHT Holdings (DHT), Gener8 Maritime Partners (GNRT), and Euronav (EURN) don’t have any “sell” or “strong sell” ratings.