Evercore ISI analyst Jonathan Chappell has adjusted the price target for Teekay Tankers (TNK, Financial) from $53 to $51, while maintaining an Outperform rating on the stock. This revision comes as the firm's tanker stocks trade at historically low valuation levels, typically seen only during significant liquidity or operational concerns, despite the sector experiencing its strongest balance sheets to date.
Chappell indicates persistent uncertainty in attracting broader interest within the tanker market. This uncertainty stems from heightened fears of a global economic downturn, exacerbated by stringent trade policies. Such conditions are prompting significant downward revisions in oil demand forecasts.
The analyst highlights that historically, economic recessions have had an adverse impact on both tanker rates and equities. As the sector navigates these challenging economic conditions, investors remain cautious about its future performance.
