According to Reuters, the consensus rating for Frontline (FRO) is 3.33, which means a “hold.”
Below are the consensus ratings for other crude oil tanker companies on a scale of one (strong buy) to five (strong sell):
- Nordic American Tankers (NAT): 3.57 or a “sell”
- Gener8 Maritime (GNRT): 2.17 or a “buy”
- Teekay Tankers (TNK): 2.63 or a “hold”
- Euronav (EURN): two or a “buy”
Six analysts gave recommendations on Frontline. Out of the analysts, 17% are bullish on the stock. One analyst gave a “buy” recommendation, three analysts gave a “hold” recommendation, one analyst gave a “sell” recommendation, and one analyst gave a “strong sell” recommendation.
The consensus 12-month target price for Frontline is $5.02, which implies a potential upside of 5.2% from the market price of $4.77 on May 29.
Frontline hasn’t released its first-quarter results. Wall Street analysts estimate that Frontline’s revenues will be ~$85.4 million in the first quarter—compared to $178.5 million in the previous quarter and ~$121.9 million a year ago. Analysts expect Frontline’s first-quarter EBITDA to be $33.3 million—compared to $36.3 million in the fourth quarter and $97.3 million a year ago.
For 2018, analysts expect Frontline’s revenues to be $407 million—37% lower than its 2017 revenue of $646 million. Frontline’s 2018 EBITDA estimate stands at $163 million—lower than its EBITDA of $207 million in 2017.
Next, we’ll discuss analysts’ recommendations for DHT Holdings.