Evercore ISI has revised its price target for Torm plc (TRMD, Financial) from $25 to $23, while maintaining an Outperform rating on the tanker company’s shares. The analyst notes that despite the firm’s tanker sector stocks currently trading at valuation discounts typically seen only during liquidity or going concern crises, the sector's balance sheets have actually strengthened significantly.
The report highlights that ongoing concerns about a potential global economic recession, exacerbated by stringent trade policies, are reshaping oil demand projections. This recalibration is creating a challenging environment for tanker stocks and rates, which historically suffer during recessionary periods. As such, investor interest in the tanker sector remains subdued.
