Credit Suisse Upgrades Frontline Ltd. (FRO) to Neutral

Credit Suisse upgraded Frontline Ltd. (NYSE: FRO) from Underperform to Neutral with a price target of $4.00 (from $2.00).

Analyst G. Lewis commented, "We are upgrading to Neutral (from Underperform) and increasing our TP to $4 (from $2). Next week the FRO and Frontline 2012 merger will be voted on (November 30th). We expect the merger to be approved which should solidify FRO's position and open the door for dividends. We are raising our 2015 EPS estimate to $0.55 (from $0.45) to account for updated day rate assumptions and costs. FRO plans to purchase 2 Suezmax newbuilds from Golden Ocean Group (3rd party affiliate) delivering in 1Q17 for ~$55M/each. This will boost FRO's (post merger) Suezmax fleet to 16 (includes 8 newbuilds). Post the merger FRO will own/charter-in a diversified fleet of crude and product tankers on the water including 20 VLCCs, 14 Suezmax, 6 MRs, and 4 LR2s."

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 $3.08 yesterday.

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