Tanker firms: Evercore cuts PTs on long-term market outlook

Torm

14/07/2020 14:00

** Evercore cuts PTs of oil tanker companies on likely lower
cash flow generation
    ** Lowers its FY 2020 spot rate forecasts to 40%; says
industry must deal with likely prolonged period of global
inventory destocking
    ** Says near- to medium-term prospects for industry could be
even more challenging than originally feared 
    ** Brokerage adds collapse in spot rates across most asset
classes over last two months was quicker and steeper than even
"biggest of bears" could have predicted
    ** Lowers PT of following firms:
   
 Company name            PT cut 
 Teekay Tankers Ltd      to $30 from $33
 Scorpio Tankers Inc     to $21 from $24
 Euronav NV              to $14 from $15
 TORM Plc                to $10.50 from $14
 Ardmore Shipping Corp   to $7.50 from $9
 Frontline Ltd           to $7 from $8.50
 Nordic American Tanker  to $3 from $3.5
 Shipping Ltd            
  

 (Reporting by Shradha Singh in Bengaluru)
 ((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780
Ext: 2804, outside U.S. +91 80 6182 2630;))