Evercore ISI has revised its price target for Frontline (FRO, Financial), reducing it from $22 to $20, while maintaining an Outperform rating on the stock. The adjustment comes amid ongoing industry challenges, as noted in a recent sector report.
According to the analysis, stocks within the tanker sector are currently trading at valuation discounts typically seen only during periods of liquidity or going concern risks. This is despite the fact that these firms have some of the strongest balance sheets observed in recent times. Nevertheless, investor interest remains subdued due to various headwinds.
The report highlights that increasing worries about a potential global economic recession, exacerbated by stringent trade policies, are significantly altering oil demand forecasts. Historically, recessionary periods have proven to be detrimental to both tanker rates and related equities, which may further explain the cautious sentiment among investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Frontline PLC (FRO, Financial) is $28.00 with a high estimate of $37.00 and a low estimate of $22.00. The average target implies an upside of 88.43% from the current price of $14.86. More detailed estimate data can be found on the Frontline PLC (FRO) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Frontline PLC's (FRO, Financial) average brokerage recommendation is currently 2.0, 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 Frontline PLC (FRO, Financial) in one year is $15.46, suggesting a upside of 4.04% from the current price of $14.86. 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 Frontline PLC (FRO) Summary page.
