Transportation

Very Mixed Analyst Bag on Shipping and Tankers

Jon C. Ogg

Canaccord Genuity has issued a very mixed report on the tanker and shipping companies that move energy products around the globe. 24/7 Wall St. gave the coverage of these and compared them to the Thomson Reuters consensus price targets from analysts. Additional color was added if applicable.

These are how the Canaccord Genuity ratings were issued in the tanker sector.

Ardmore Shipping Corp. (NYSE: ASC) was started as a Buy with a $17 price target. After closing at $12.66, this call is right in line with the $17.17 consensus price target. The firm’s report called it a stout tanker.

DHT Holdings Inc. (NYSE: DHT) was a “double the hull, double the ton” call. The firm initiated coverage as Buy and assigned a $10 price target. With a $6.64 close, its consensus price target is also close to $10.10.

Navios Maritime Acquisition Corp. (NYSE: NNA) was started as Hold with a $3.75 price target. This is a 5% yield, and the share price of $3.48 does still imply at least some upside. Navios Maritime’s consensus price target from analysts is $5.40.

Nordic American Tankers Ltd. (NYSE: NAT) is one of the better known shippers, but Canaccord Genuity started coverage with a very ugly Sell rating. The price target of $7 is also more than $2 lower than the $9.08 close. The consensus price target is closer to $9.50.

Scorpio Tankers Inc. (NYSE: STNG) was given only a Hold rating and a $9 price target. Interestingly enough, this Hold looks like a “Sell” because Scorpio closed at $9.71 here. That 3.9% yield is not enough to make up for the expected valuation, and Canaccord’s report teased that it is in its nature to sting.

Tsakos Energy Navigation Ltd. (NYSE: TNP) was given a positive rating and was credited as having a little bit of everything. The firm started coverage as Buy and assigned a $9.50 price target, implying more than 40% upside from the $6.63 close. The consensus price target is $9.77.

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