Deutsche Bank Downgrades Frontline Ltd. (FRO) to Sell; Aging Fleet & Capped Earnings

May 30, 2012 7:29 AM EDT
Get Alerts FRO Hot Sheet
Price: $7.07 -0.42%

Rating Summary:
    3 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Deutsche Bank downgraded Frontline Ltd. (NYSE: FRO) from Hold to Sell.

Deutsche analyst said, "Market concerns that FRO would be seriously weakened to the benefit of Frontline 2012 after the December 2011 restructuring of FRO, appear to be confirmed. In Q1, FRO had to give up $15 million of earnings upside to its charterors (lessor of ships to FRO) as a cash sweep post-restructuring. Further, John Fredriksen, FRO's Chairman, has decided to sell his privately held sixteen crude and product tanker newbuilding order to Frontline 2012, while FRO's fleet continues to age. Given the lower-quality fleet, limited earnings upside and negative NAV we are downgrading FRO to SELL."

For an analyst ratings summary and ratings history on Frontline Ltd. click here. For more ratings news on Frontline Ltd. click here.

Shares of Frontline Ltd. closed at $5.44 yesterday.

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