In a report released today, Nikesh Shukla from Drewry Financial maintained a Sell rating on Frontline Ltd (NYSE: FRO), with a price target of $3.50. The company’s shares opened today at $5.50.
Shukla said:
“We maintain our fair value estimate of USD 3.50 per share for FRO’s stock and reiterate our Unattractive view on account of the reduced earnings potential of the fleet, expected net losses for the company over the next two years and depressed asset values. We place the company in the Medium Risk category, indicating a stable outlook over the long term. The key catalysts for the market turnaround are rising US crude exports on long-haul routes and a potential increase in demolitions.”
According to TipRanks.com, Shukla is a 3-star analyst with an average return of 5.6% and a 48.6% success rate. Shukla covers the Services sector, focusing on stocks such as Nordic American Tanker, Teekay Tankers Ltd, and DHT Holdings.
Frontline Ltd has an analyst consensus of Hold.
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Based on Frontline Ltd’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $13.64 million. In comparison, last year the company had a net profit of $27.02 million.
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Frontline Ltd. is an international shipping company, which engages in the ownership and operation of oil and product tankers. It also offers the seaborne transportation of crude oil and oil products. The company was founded in 1985 and is headquartered in Hamilton, Bermuda.
