UPDATE: Wells Fargo Starts DHT Holdings (DHT) at Market Perform
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(Updated - September 26, 2016 9:40 AM EDT)
Wells Fargo initiated coverage on DHT Holdings (NYSE: DHT) with a Market Perform rating. Analyst Michael Webber said the softer market keeps him on the sidelines for now.
"We believe DHT’s positive (1) discounted valuation (0.75x NAV and 0.4x Mid-Cycle NAV), (2) solid corporate governance track record, and (3) passthrough dividend (8% 17E yield, 60% of Net Income) are balanced against its (1) more limited scale/liquidity ($398MM Market Cap, $12MM/daily trading volume), (2) sector-wide orderbook pressure (7% supply growth through 2017), and (3) the potential for softer global volumes amid inventory destocking and narrowing expectations around topline demand growth. We view DHT as a high quality avenue for tanker exposure given its clean/transparent structure and strong balance sheet (42% net debt/cap). We are introducing our valuation range of $5.00-$6.00/share (31% upside potential) based on 0.90-1.1x our NAV estimate of $5.57/share, as well as our 2016E and 2017E EPS of $0.91 and $0.51," said Webber.
Shares of DHT Holdings closed at $4.17 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Cowen Downgrades Under Armour, Inc. (UA) to Market Perform
- Graphic Packaging (GPK) PT, Estimates Trimmed at Jefferies Post Q3
- FBR Capital Remains Bullish Following Select Income REIT's (SIR) 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!