Tag Archives: Euronav

EURN-US: Initiation (SELL, TP 6.2)

Euronav has a large fleet of crude tankers, consisting of 32 VLCCs, 23 Suezmaxes and a 50% ownership in two FSOs on long term charters. The company enjoys a large liquidity reserve and could play to role as consolidator in the current trough, as the company has done in earlier cycles. Despite being one of the best run companies in the industry and currently priced at P/NAV 0.96, we expect continued low earnings and further falling asset prices to weigh on the share price. We initiate coverage with a SELL recommendation and target price of USD 6.2/sh (-21%).

Valuation: We read more

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