Teekay Tankers (Buy, TP: USD52.70) - 1.0x NAV on the horizon
Teekay Tankers exceeded expectations in Q4, benefiting from favourable markets and high operational leverage. Despite a softer start to 2023, recent strength for mid-size tankers should bode well for its spot exposure, and we estimate an earnings yield of c20% for 2023, with the potential for meaningful shareholder returns as the company builds a large cash position. However, the stock is still trading at an attractive discount (EV/GAV of 0.79x versus peers’ 0.97x) in our view, which should support upside to the current share price. We reiterate our BUY and have raised our target price to USD52.7 (47.1).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.