FRO - Frontline Nordic American Tanker upgraded at Jefferies on bullish tanker view

Frontline ( NYSE: FRO ) +8.1% and Nordic American Tanker ( NYSE: NAT ) +9.4% in Tuesday's trading, as the oil tanker shipping company is upgraded to Buy from Hold along with Euronav ( NYSE: EURN ) and Tsakos Energy ( TNP ), with price targets raised on all, at Jefferies, which said it reiterates its positive outlook for the sector.

Foreseeing strong earnings for the group this winter and throughout 2023-24, Jefferies analyst Omar Nokta said the Russia-Ukraine war has impacted trade flows and tanker routes, and brought to the forefront the underlying tightness of the oil market, inducing higher production and refinery runs, benefiting tankers.

"With both crude and product tanker rates at healthy levels, the sector is primed for a meaningful move higher in the coming months even after yesterday's OPEC+ agreement to cut supplies," Nokta wrote.

The four upgraded stocks join the firm's other Buy-rated names in the tanker group: ( ASC ), ( DHT ), ( INSW ), ( STNG ) and ( TNK ).

Also, in a letter to shareholders, Nordic American Tanker ( NAT ) said its suezmaxes are well placed to benefit from the uncertainty surrounding the Russia-Ukraine war, and it expects to raise its dividend .

For further details see: