Teekay Tankers (Buy, TP: USD62.00) - Underrated at >50% steel discount
We find Teekay Tankers attractively valued at a >50% discount to current asset values. On the end-Q3 cash position and scrap value for its 15-year average fleet age, we calculate >60% of the share price is covered, mitigating the downside risk. However, with our 2026e FCFE of USD25/share and end-2026e GAV on vessel values in line with the historical average, we see 60% upside potential to the share price. We reiterate our BUY, but have cut our target price to USD62 (74).
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.