'Time for a breather': KBC cuts Euronav to 'hold' after strong rally

CMB.TECH NV

23/05/2024 07:53

** KBC Securities cuts Belgian oil tanker company Euronav
 EUAV.BR  to "hold" from "buy", saying its shares have had a
strong rally since March, with positive news including a
"surprise" cash distribution already done
    ** Shares have risen about 25% since late March, KBC says,
adding that recent Q1 figures were broadly as expected while
positive news have already been announced
    ** It cuts Euronav's target price by 21% to 15 euros;
Euronav closed at 15.01 euros on Wednesday
    ** "To our surprise a $1.15 p.s. 1Q24 cash distribution was
proposed next to the $4.57 p.s. cash distribution announced on
March 20th," KBC says, also pointing to $115 mln worth of
buy-backs executed in Q1
    ** It still acknowledges tailwinds for the wider sector, as
crude tanker market continues to benefit from oil demand growth,
historically low order books and an older age profile
    ** Out of seven analysts that cover Euronav, two rate the
stock "strong buy" or "buy", and five "hold"

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))