Buy ratings on shipping names; hold or sell on others

Industry Discussions Shipping News
1

Broker Jeffries initiated Buy rating on six shipping entities. The names are across the shipping segments and have various target prices

  • STNG $90
  • NMM $85
  • INSW $90
  • SBLK $29
  • GSL $45
  • CCEC $20 (Hold)

https://seekingalpha.com/news/4579642-scorpio-tankers-leads-seven-ocean-transportation-stocks-with-new-buy-ratings-at-jefferies

On Tuesday (04/21), Evercore downgraded three tanker companies

  • FRO & DHT cut to inline from Outperform, and
  • NAT cut from inline to Underperform.

https://seekingalpha.com/news/4577509-tanker-firms-dht-frontline-nordic-american-downgraded-at-evercore-isi

NAT’s share price seems to have already responded a little to the market, prior to the downgrade. From what CEO Herb Hannsson has shared, the company should have decent Q1 2026 results.

--

Personally, I have initiated a position in DHT, and added nibbles along the way. DHT has reasonable leverage, and took opportunistic time coverage on three vessels. Above $90K daily on three VLCCs is very nice way to hedge against a bouncy tanker market. Plus, an older vessel sale should help with small account adjustment (more debt due to 4 VLCC newbuilds).

4 Likes
2

I should add, I have existing stakes in INSW, GSL & FRO. I have been adding to the last two, GSL and FRO, in the last few weeks. Vessels that “escaped” the Persian Gulf the last few weeks should alleviate the supply side some, especially on the tanker side.