Barclays Maintains an 'Equalweight' on Teekay Corp. (TK); Earnings A Bit Soft; Tanker Segment Remains Challenged
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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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Barclays maintains an 'Equalweight' on Teekay Corp. (NYSE: TK) price target of $29.00.
Barclays analyst says, "Earnings a bit short: TK reported 3Q11 EPS of (58)c to our (40)c and consensus of (64)c. The variance to us lays in TNK and parent earnings a bit shy on operating income; non-controlling interest also a bit shy from daughter earnings...TK suspended its share repurchase program as the company deployed capital in recent acquisitions. Since late 2010, the company had repurchased roughly 7% of outstanding shares. But we note that the company is currently trading at a dividend yield of ~5% with potential for greater dividend growth in daughter company distributions from recent acquisitions."
"TK's exposure to fixed rate businesses through its daughter companies provides a buffer to its challenging tanker business. Tanker market fundamentals remain
daunting as supply challenges in the years ahead indicate rate pressure is to remain. However, TK at the parent level has relatively small amounts of debt and daughter company dividends should provide comfort for TK equity owners during a difficult market environment."
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 $27.73 yesterday.
Barclays analyst says, "Earnings a bit short: TK reported 3Q11 EPS of (58)c to our (40)c and consensus of (64)c. The variance to us lays in TNK and parent earnings a bit shy on operating income; non-controlling interest also a bit shy from daughter earnings...TK suspended its share repurchase program as the company deployed capital in recent acquisitions. Since late 2010, the company had repurchased roughly 7% of outstanding shares. But we note that the company is currently trading at a dividend yield of ~5% with potential for greater dividend growth in daughter company distributions from recent acquisitions."
"TK's exposure to fixed rate businesses through its daughter companies provides a buffer to its challenging tanker business. Tanker market fundamentals remain
daunting as supply challenges in the years ahead indicate rate pressure is to remain. However, TK at the parent level has relatively small amounts of debt and daughter company dividends should provide comfort for TK equity owners during a difficult market environment."
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 $27.73 yesterday.
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