Deutsche Bank Downgrades Teekay Tankers (TNK) to Hold
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Rating Summary:
6 Buy, 6 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Deutsche Bank downgraded Teekay Tankers (NYSE: TNK) from Buy to Hold with a price target of $7.00. The change is tied to valuation and growth concerns.
"The current very strong crude tanker market is a classic representation of shipping sector cycle dynamics. The very weak market earlier this decade resulted in few orders for new vessels which in turn has allowed for today’s robust rate environment to be achieved. Unfortunately it looks like it won’t last much beyond 1H16, as the industry’s highly fragmented structure and relatively low barriers to entry result in accelerating supply growth. This is likely to have negative implications for crude tanker company valuations, as investors rightfully question the sustainability of the current strong performance. As such we are tempering our bullishness on Euronav and downgrading our rating on Teekay Tankers to Hold from Buy," said analyst Amit Mehrotra.
For an analyst ratings summary and ratings history on Teekay Tankers click here. For more ratings news on Teekay Tankers click here.
Shares of Teekay Tankers closed at $6.23 yesterday.
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