Evercore ISI Downgrades DHT Holdings (DHT) to In Line
(Updated - April 21, 2026 4:20 PM EDT)
Evercore ISI analyst Jonathan Chappell downgraded DHT Holdings (NYSE: DHT) from Outperform to In Line with a price target of $19.00 (from $23.00).
The analyst comments "Investor interest in tanker stocks has been greater over the last two months than at any time since the floating storage boom of April 2020. Yet, apart from 101 discussions on tanker market fundamentals to the uninitiated, the most frequent line of questioning has centered on “why haven’t the stocks performed better since the war began and spot rates spiked?” The perceived disconnect between higher spot rates and the associated onset of what is likely to be record-high EPS and dividends and stocks that are stuck in a trading range (the 7 stocks under our coverage are up 2% to down 7%, with 6 of the 7 down, since the hostilities began) is noteworthy, yet was predictable. Shipping has long been a “buy the rumor, sell the news” sector. Indeed, despite the relative flat prices over the last 7 weeks, the stocks are up 38-70% year to date and 75-140% off the 52-week lows. Yes, starting levels were depressed, with the entire group trading at large discounts to NAV. But as a perfect storm of a strong winter into a cornering of the VLCC market into Venezuelan oil moving on compliant ships into the closing of the Strait of Hormuz (the all-time tail risk catalyst) played out, leading to material rate spikes and upcoming record EPS, many stocks already reflected much of the earnings upside AND investors have a propensity to fade record rates, particularly if viewed as anomalous, even before seeing the ultimate EPS impact. This same dynamic played out in the spring of 2020, as rates and stocks spiked on a floating storage boom tied to COVID lockdowns, yet stock prices peaked in early May, nearly 3 full months before the peak EPS prints for 2Q20. The Iran War and Strait closing are unprecedented and there is no line of sight on a final outcome and timing (we detail 3 likely scenarios within), creating the potential for more headline noise and volatility. However, there will be a resolution eventually, accompanied by a large reversion of tanker spot rates, asset values, and premium multiples, and no investor wants to be the last one holding the bag when that occurs. We downgrade DHT and FRO to In Line (from Outperform) and NAT to Underperform (from In Line) as the risk/rewards skews unfavorable from here."
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 $18.66 yesterday.