Global Hunter Securities Starts Nordic America Offshore Ltd. (NAO) at Neutral

Global Hunter Securities initiates coverage on Nordic America Offshore Ltd. (NYSE: NAO) with a Neutral rating and a price target of $9.00.

Analyst Mark Brown commented, "The company has assembled a premium fleet of newly built vessels suitable for the North Sea market. Operators will increasingly prefer its higher-specification vessels capable of working in more challenging environments, operating more efficiently and complying with stricter regulatory codes. However, NAO’s primary market faces significant uncertainties regarding vessel demand as major oil companies increasingly pull back spending and postpone or cancel drilling programs. NAO's valuation looks fair on discounted cash flows, but appears stretched relative to peers according to trading multiples. At the same time, the company may be attractive as an acquisition candidate with its essentially standardized fleet of young and highly capable vessels. Although we favor the story’s long-term merits, the North Sea downturn still appears in the early stages, likely presenting challenges for the stock over at least the next few quarters, hence our Neutral rating."

For an analyst ratings summary and ratings history on Nordic America Offshore Ltd. click here. For more ratings news on Nordic America Offshore Ltd. click here.

Shares of Nordic America Offshore Ltd. closed at $8.97 yesterday.

You May Also Be Interested In

• RBC Capital Downgrades Range Resources (RRC) to Sector Perform
• Phillip Securities Upgrades Spotify (SPOT) to Buy
• Atlassian Corporation (TEAM) PT Lowered to $230 at Canaccord Genuity