Deutsche Bank Upgrades Frontline Ltd. (FRO) to Buy, 'shares will trade at a premium to NAV'

Deutsche Bank analyst Amit Mehrotra upgraded Frontline Ltd. (NYSE: FRO) from Hold to Buy with a price target of $26.00 (from $17.00).

The analyst comments "We are increasing our price target for FRO shares to $26 based on recent tanker asset price appreciation and on shares trading at a premium to pro-forma NAV, assuming delivery of 24 recently-purchased VLCCs from EURN in the coming weeks. We assume FRO shares will trade at a premium to NAV based on historical performance, as well as on FRO's custom of paying ~80% of net income as a quarterly dividend. We are upgrading our rating from Hold to Buy based on ~20% potential upside to our price target and based on our estimate of a ~6.0% annual dividend yield for 2024 based on the recent closing price."

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 $21.78 yesterday.

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