Teekay Tankers (Hold, TP: USD11.60) - Market weakness affects estimates
Ahead of the Q4 report, we have reduced our 2021 and 2022 estimates on recent market weakness and Teekay Tankers’ average fleet age of ~13 years leaves it exposed to rising bunker prices. However, we find the company’s liquidity adequate and estimate that current scrap values would more than cover outstanding debt on the back of prudent capital allocation through the last upcycle. For Q4, we find ourselves above consensus, but reiterate our HOLD and have cut our target price to USD11.6 (14.9).
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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