Energy

UBS Downgrades Energy Shipping Companies Close to 52-Week Lows

Jon C. Ogg

Published: July 26, 2016 10:35 am

Last Updated: January 13, 2020 5:16 am

When investors see analysts downgrade a sector, they sometimes worry. But what about when that sector downgrade comes at the same time that the key sector’s stocks are all down so much that they are flirting with 52-week lows? That is when it is time to do some serious homework. 24/7 Wall St. has tracked multiple energy transportation downgrades out of UBS on Tuesday. These are in the shipping companies, which are generally more focused on the transportation and storage of oil and gas products.

Investors do need to consider that the UBS cuts here are coming when all five stocks are far closer to their 52-week lows. Many of the companies tied to energy, even in transportation and storage, have seen their shares (or units) rally handily from the lows in January and February of this year.

Here are five of the downgrades seen this Tuesday morning. Included are the trading histories and the size of each.

DHT Holdings Inc. (NYSE: DHT) was downgraded to Neutral from Buy, and its price target was cut to $4.75 from $7.00, after closing at $4.91 before the call was made. The shares were last seen trading down 1% at $4.86, in a 52-week range of $4.56 to $8.79. DHT’s market cap is $455 million.

Euronav N.V. (NYSE: EURN) was downgraded to Neutral from Buy, and the price target was cut to $9.50 from $12.00. Its shares were last seen down 1% at $8.97, versus a prior close of $9.05. The market cap is $1.42 billion, and the 52-week trading range is $8.48 to $16.39.

Scorpio Tankers Inc. (NYSE: STNG) was downgraded to Neutral from Buy, and the price target was cut to $5.00 from $6.50 in the call. The stock was trading at $4.63 prior to the downgrade, and it was last seen down 1.1% at $4.58. The market cap is $792 million, and the 52-week range is $4.05 to $11.53.

Teekay Tankers Ltd. (NYSE: TNK) was downgraded to Neutral from Buy and the price target was cut to $3 from $4. Shares closed at $3.06 ahead of the call and were last seen down almost 3% at $2.99, in a 52-week range of $2.78 to $8.53. The market cap is $465 million.

Tsakos Energy Navigation Ltd. (NYSE: TNP) was downgraded to Neutral from Buy, and its price target was cut to $5.50 from $7.00. The shares closed at $5.25 ahead of the call and were last seen down 2.9% at $5.10. Tsakos has a 52-week range of $4.48 to $9.98 and a $440 million market cap.

Tuesday’s top analyst upgrades and downgrades included Gilead Sciences, Sprint, Starbucks, Southwest Airlines, Texas Instruments, Walt Disney, Nordstrom and many more.