Teekay Tankers (Buy, TP: USD2.90) - Narrowing discount to peers
Teekay Tankers reported yet another strong set of quarterly results, leading us to lift our 2019e EBITDA by 7% on Q4 guidance, while our 2020e EBITDA is up by 6% on lower operational costs. We believe 2020 could see crude tanker tonne-mile demand growth of 5.8%, the strongest in 17 years, driven by US exports and increased refinery runs. We reiterate our BUY, while we have raised our target price to USD2.90 (2.50), as we believe Teekay Tankers is set to narrow the valuation discount to its peer group.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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