Frontline: Analysts Recommend a ‘Hold’



Consensus rating

According to Reuters, the consensus rating for Frontline (FRO) is 3, which means a “hold.”

Below are the consensus ratings for other crude oil tanker companies:

  • Nordic American Tankers (NAT) – 3.44 or a “hold”
  • Gener8 Maritime (GNRT) – 2.0 or a “buy”
  • Teekay Tankers (TNK) – 2.83 or a “hold”
  • Euronav (EURN) – 2.17 or a “buy”

Six analysts gave recommendations on Frontline. Out of these, 17% of the analysts are bullish on the stock. One analyst gave a “buy” recommendation, four analysts gave a “hold” recommendation, and one analyst gave a “sell” recommendation.

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Target price

The consensus 12-month target price for Frontline is $5.75, which implies a potential upside of 23.7% from the market price of $4.65 on December 27, 2017.

4Q17 estimates

Wall Street analysts estimate that Frontline’s revenue will be ~$102.9 million in the fourth quarter—compared to $75.8 million in 3Q17 and ~$178.2 million in 4Q16. Since the revenue is expected to be higher, the EBITDA (earnings before interest, tax, depreciation, and amortization) is also estimated to be higher than the previous quarter. Analysts expect Frontline’s 4Q17 EBITDA to be $52 million—compared to $29.8 million in 3Q17 and $40.08 million in 4Q16.

For 2017, analysts expect Frontline’s revenue to be $481 million, which is 36% lower than its 2016 revenue of $754.3 million. In 2018, analysts expect Frontline’s revenue to be $492 million. Frontline’s 2017 EBITDA estimate stands at $206 million, which is lower than its EBITDA of $318 million in 2016.

Next, we’ll discuss analysts’ recommendations for DHT Holdings


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