Jefferies Maintains a 'Buy' on DHT Holdings (DHT); Equity Offering Helps, But at Steep Price
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Price: $19.52 +1.67%
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies maintains a 'Buy' on DHT Holdings (NYSE: DHT) price target lowered from $2.00 to $1.50.
Analyst, Douglas J. Mavrinac, said, "DHT is effectively re-capitalizing the
Company at $0.70 per share, a substantial discount to our pre-deal NAV estimate of $1.65 per share as well as Monday's closing price of $1.48 per share. Consequently, although the equity raise improves DHT's financial flexibility, it comes at a very, very steep price."
"Given the Company's proforma cash balance, we believe it could comfortably acquire a pair of 5-year old VLCCs using 50/50 debt/equity based on current secondhand value estimates of $65 million for a 5-year old VLCC. Such an acquisition would result in an incremental $14 million in annual EBITDA if VLCC rates normalized to $50,000 per day."
(FY12 EPS estimate cut from $0.05 to $0.04 and FY13 raised from (0.22) to (0.09))
For an analyst ratings summary and ratings history on DHT Holdings click here. For more ratings news on DHT Holdings click here.
Shares of DHT Holdings closed at $1.09 yesterday.
Analyst, Douglas J. Mavrinac, said, "DHT is effectively re-capitalizing the
Company at $0.70 per share, a substantial discount to our pre-deal NAV estimate of $1.65 per share as well as Monday's closing price of $1.48 per share. Consequently, although the equity raise improves DHT's financial flexibility, it comes at a very, very steep price."
"Given the Company's proforma cash balance, we believe it could comfortably acquire a pair of 5-year old VLCCs using 50/50 debt/equity based on current secondhand value estimates of $65 million for a 5-year old VLCC. Such an acquisition would result in an incremental $14 million in annual EBITDA if VLCC rates normalized to $50,000 per day."
(FY12 EPS estimate cut from $0.05 to $0.04 and FY13 raised from (0.22) to (0.09))
For an analyst ratings summary and ratings history on DHT Holdings click here. For more ratings news on DHT Holdings click here.
Shares of DHT Holdings closed at $1.09 yesterday.
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