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Wells Fargo Downgrades Frontline Ltd. (FRO) to Market Perform; Risk/Reward Profile is Relatively Balanced

June 3, 2011 7:03 AM EDT Send to a Friend
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Price: $3.68 +1.66%

Rating Summary:
    2 Buy, 7 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 10 | New: 7
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Wells Fargo downgraded Frontline Ltd. (NYSE: FRO) from Outperform to Market Perform.

Wells analyst says, "We are downgrading shares of FRO on the back of prolonged tanker weakness and management's inclination to position FRO for a multi-year tanker trough. While we continue to believe we are trending along the bottom of the tanker market with the potential for a 2012 recovery, we believe better entry points into FRO may emerge, as the company looks to shed capacity and take a more defensive stance. We believe names such as Teekay (NYSE: TK) and Overseas Shipholding (NYSE: OSG), which are trading in closer proximity to their respective NAVs, represent better value at this point in the cycle."

For more ratings news on Frontline Ltd. click here and for the rating history of Frontline Ltd. click here.

Shares of Frontline Ltd. closed at $17.84 yesterday.




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