Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Frontline, shipping stocks downgraded at Wells Fargo on macro headwinds

Published 01/10/2019, 08:41 AM
© Reuters.  Frontline, shipping stocks downgraded at Wells Fargo on macro headwinds
  • Frontline (NYSE:FRO) -3.8% pre-market after Wells Fargo (NYSE:WFC) downgrades shares to Market Perform from Outperform with a $5.50 price target, cut from $7, as the high level of volatility in equities and commodities limits "realistic" potential upside.
  • The downgrade is one of several in the shipping sector, which Wells analyst Michael Webber sees as range-bound through most of H1 as the market is in part of the cycle where "macro simply drives the bus."
  • Along with FRO, the firm cuts KEX, DHT, TNK, NVGS, CPLP and TOO to Market Perform from Outperform.
  • Tanker stocks have traded off with rest of the energy space, which Webber says places the group in an interesting position: cheaper price/NAV multiples and a softer 2019 outlook but still "enough long-term juice" to warrant a gradual move back to mid-cycle values.
  • Webber also says he remains constructive on the secular buildout of liquefied natural gas export infrastructure including GLNG, GLOG, GLOP, LNG and CQP.
  • Now read: Golar LNG Partners: Solid Quarter, Likely To Improve


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.