Jefferies Cuts Price Targets on Teekay Corp. (TK), Remains Top Pick in Tanker Sector
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Price: $13.24 +0.46%
Rating Summary:
3 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Buy rating on shares of Teekay Corp. (NYSE: TK), but is cutting its price target from $40 to $38.
The company reported its Q3 results yesterday with earnings topping the consensus and falling short of the firms estimate. The firm notes the miss reflects lower than expected Aframax TCE rates during the quarter as well as higher than anticipated charterhire expenses.
Due to an earlier than expected delivery of the Sevan FPSO assets, the firm is raising its Q4 EPS estimate from ($0.29) to ($0.22).
Although the firm forecasts that the tanker market will be oversupplied in 2012, given the weak macroeconomic outlook, the firm notes Teekay has a strong cash balance sheet which should allow them to pass through the rough times.
An analyst at Jefferies states, "Given Teekay's increasingly strong balance sheet and increasingly diversified business model, and with TK shares trading at nearly a 30 percent discount to estimated NAV and a dividend yield of 4.8 percent, TK shares remain one of our few Buy-rated names in the tanker sector and our top pick within the tanker sector."
Jefferies is lowering its FY11 EPS estimate from ($1.66) to ($1.71) and is maintaining its FY12 estimate of ($0.22).
For an analyst ratings summary and ratings history on Teekay Corp. click here. For more ratings news on Teekay Corp. click here.
Shares of Teekay Corp. closed at $26.54 yesterday.
The company reported its Q3 results yesterday with earnings topping the consensus and falling short of the firms estimate. The firm notes the miss reflects lower than expected Aframax TCE rates during the quarter as well as higher than anticipated charterhire expenses.
Due to an earlier than expected delivery of the Sevan FPSO assets, the firm is raising its Q4 EPS estimate from ($0.29) to ($0.22).
Although the firm forecasts that the tanker market will be oversupplied in 2012, given the weak macroeconomic outlook, the firm notes Teekay has a strong cash balance sheet which should allow them to pass through the rough times.
An analyst at Jefferies states, "Given Teekay's increasingly strong balance sheet and increasingly diversified business model, and with TK shares trading at nearly a 30 percent discount to estimated NAV and a dividend yield of 4.8 percent, TK shares remain one of our few Buy-rated names in the tanker sector and our top pick within the tanker sector."
Jefferies is lowering its FY11 EPS estimate from ($1.66) to ($1.71) and is maintaining its FY12 estimate of ($0.22).
For an analyst ratings summary and ratings history on Teekay Corp. click here. For more ratings news on Teekay Corp. click here.
Shares of Teekay Corp. closed at $26.54 yesterday.
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