Evercore ISI's Jonathan Chappell has reduced Ardmore Shipping's (ASC, Financial) price target from $14 to $13. Despite maintaining an Outperform rating for the shares, Chappell highlights that the tanker industry's stocks are trading at unusual valuation discounts. These discounts are typically observed only under significant liquidity or going concern risks, even as balance sheets in the sector remain robust.
The analyst attributes this cautious stance to rising fears of a global economic downturn exacerbated by restrictive trade policies. These concerns have led to a significant downward revision in oil demand forecasts. Historically, such recessionary periods have negatively impacted both tanker rates and related equities, adding pressure to the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Ardmore Shipping Corp (ASC, Financial) is $16.30 with a high estimate of $27.00 and a low estimate of $11.00. The average target implies an upside of 78.92% from the current price of $9.11. More detailed estimate data can be found on the Ardmore Shipping Corp (ASC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Ardmore Shipping Corp's (ASC, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ardmore Shipping Corp (ASC, Financial) in one year is $7.49, suggesting a downside of 17.78% from the current price of $9.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ardmore Shipping Corp (ASC) Summary page.
