Opinions
The Panic-Proof Portfolio (Stockchase Research)
Teekay Tankers Ltd.
TNK-N
TOP PICK
Apr 25, 2023
Stock price when the opinion was issued
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TNK is a Bermuda based operator of 45 mid-sized crude oil and refined product tankers. Recently reported earnings showed revenues were up 129% on the quarter and double on an annual basis. It trades at 1.5x earnings and supports a ROE of 24%. It is a low beta stock, meaning it will tend to operate more independently of the underlying equity market volatility. We recommend placing a stop-loss at $31.50, looking to achieve $51 — upside potential of 21%. Yield 0%
(Analysts’ price target is $50.78)Our PAST TOP PICK with TNK has triggered its stop at $37. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 11%, based on our previous buy recommendation.
We reiterate TNK, a Bermuda based operator of 45 mid-sized crude oil and refined product tankers, as a TOP PICK. Security of energy supply is key in the market today and they move product to market. It trades at 6x earnings, 1.2x book and supports a ROE of 24%. We like that cash reserves are growing while they are retiring debt. We continue to recommend a stop-loss at $37, looking to achieve $55 — upside potential of 30%. Yield 0%
(Analysts’ price target is $55.02)