If the economy gets a boost in 2016, one sector that could see a nice bump is transportation, especially if the energy sector bottoms out and starts to make a comeback. Toss in a big pot of quantitative easing in Europe, and all systems may be go for investors to see a shipping resurgence next year.
A new Deutsche Bank report features three top tanker picks for 2016, and the analysts feel like the sector, and especially the top companies, will finally see cheap equity values converge with robust fundamentals. They also think the sector will experience a historically high amount of dry bulk scrapping, which will lead to a second half 2017 recovery. Lastly, they are also very hopeful overall sentiment for the space improves next year.
Here are the three top picks in tankers for 2016 from Deutsche Bank.
Ardmore Shipping
This could be a great play for more aggressive total return accounts. Ardmore Shipping Corp. (NYSE: ASC) owns and operates a fleet of midsize product and chemical tankers ranging from approximately 17,600 to 50,000 deadweight tonnage. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders and chemical companies, with its modern, fuel-efficient fleet of tankers.
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