Teekay Tankers rises as BofA upgrades to 'buy', raises PT

Teekay Tankers

19/01/2024 18:03

** Shares of shipping company Teekay Tankers  TNK.N  up 3.4%
at $59.18
    ** Brokerage BofA Securities upgrades co's rating to "buy"
from "neutral"; raises PT to $72 from $56
    ** New PT represents a 26% upside to stock's last close
    ** Brokerage sees disruptions in shipping supply chain
fluidity due to Red Sea attacks as a potential driver for
shipping rates in 2024
    ** "We expect the shipping supply-demand balance to remain
favorable with rates holding well above carrier breakeven
levels, leading to strong cash generation" - BofA
    ** Threat of attacks and re-routing of vessels around longer
Cape of Good Hope route to continue to increase ton-mile demand,
extending rate cycle for supernormal tankers, says brokerage
    ** Seven brokerages rate the stock "buy" or higher; their
median PT is $65 - LSEG
    ** TNK stock had risen 66.3% in 2023

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))