UPDATE: Wells Fargo Starts DHT Holdings (DHT) at Market Perform

September 26, 2016 7:30 AM EDT
Get Alerts DHT Hot Sheet
Price: $4.28 --0%

Rating Summary:
    8 Buy, 5 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 28 | Down: 28 | New: 23
Trade DHT Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium 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.

For an analyst ratings summary and ratings history on DHT Holdings click here. For more ratings news on DHT Holdings click here.

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

Related Categories

Analyst Comments, Analyst EPS View, New Coverage

Related Entities

Wells Fargo

Add Your Comment