Cantor Fitzgerald Upgrades Tsakos Energy Navigation (TNP) to Buy; Valuation Call

June 24, 2009 8:52 AM EDT

Cantor Fitzgerald upgrades Tsakos Energy Navigation, Ltd. (NYSE: TNP) from Hold to Buy

Cantor analyst says, "Tsakos' well-balanced mix of crude and product carriers, newbuild program and significant charter coverage (approximately 66% and 45% of its fleet operating days fixed for 2009 and 2010, respectively) should enable the company to weather any short-term volatility in rates, while at the same time giving upside exposure during stronger markets, in our opinion. Furthermore, we suggest that Tsakos maintains a healthy balance sheet, with over $300 million in cash and total debt-to-book capitalization of 61%. Additionally, the company's modest newbuild program (two Aframaxes in 2010 and two in 2011) could be funded entirely from existing cash on hand and anticipated free cash flow if necessary. Given these factors, we believe the recent sell-off in the company's stock to be overdone and suggest the current level could be an attractive entry point for investors. We look for TNP to generate operating EPS of $1.32 and EBITDA of $199 million in 2009. For 2010, we expect the company to report EPS of $1.37 and EBITDA of $205 million."

To see more analyst ratings on TNP Click Here.

Tsakos Energy Navigation Limited, together with its subsidiaries, provides seaborne crude oil, petroleum products, and liquefied natural gas transportation services.

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