INSW - Euronav cut at Jefferies but tanker stocks surge as Russia halts gas flows

Euronav (NYSE:EURN) +2.2% on Wednesday even after Jefferies downgraded shares to Hold from Buy with a $12 price target, cut from $13, as tanker and shipping stocks are rallying on reports that Russia will halt gas flows to Poland and Bulgaria, as tankers will be needed to ship incremental gas and coal from North America to Europe. Jefferies analyst Randy Giveans sees Euronav (EURN) as fairly valued after this month's merger announcement with Frontline (FRO); the deal is still pending final structuring details, but Giveans believes the merger will be approved later this year. With a combined fleet of 69 very large crude carriers and 77 smaller tankers, the new combined company would control ~10% of the global VLCC fleet. Several shipping and tanker names were reinstated with Buy ratings at Jefferies, as "rates and asset values are now on the rise across several sub-sectors and the Jefferies shipping index

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Euronav cut at Jefferies but tanker stocks surge as Russia halts gas flows