Wells Fargo Downgrades Frontline Ltd. (FRO) to Underperform; Short Squeeze Has Taken Valuation Too High
Get Alerts FRO Hot Sheet
Price: $23.44 +3.17%
Rating Summary:
5 Buy, 9 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 9 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Wells Fargo downgraded Frontline Ltd. (NYSE: FRO) from Market Perform to Underperform with a price target range of $3-4.00
Wells analyst said, "We are downgrading shares of FRO as we believe the recent short squeeze (FRO is up 69% over the past 10 trading days, vs. S&P 500, up 5%), has taken valuation well beyond a sustainable level – particularly given the fact that we continue to estimate that the stock has a negative NAV (-$4.29/share). While we remain conscious of the fact that the recent short-squeeze could continue, potentially pushing shares even higher, at this point, we believe the downside risk in the stock [a conservative $5/share (or 64%) based on our price target] far exceeds any potential upside from here, particularly given the fact that there has been little-to-no change in FRO’s long-term fundamentals."
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 $8.28 yesterday.
Wells analyst said, "We are downgrading shares of FRO as we believe the recent short squeeze (FRO is up 69% over the past 10 trading days, vs. S&P 500, up 5%), has taken valuation well beyond a sustainable level – particularly given the fact that we continue to estimate that the stock has a negative NAV (-$4.29/share). While we remain conscious of the fact that the recent short-squeeze could continue, potentially pushing shares even higher, at this point, we believe the downside risk in the stock [a conservative $5/share (or 64%) based on our price target] far exceeds any potential upside from here, particularly given the fact that there has been little-to-no change in FRO’s long-term fundamentals."
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 $8.28 yesterday.
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