Here Are Jefferies' Top 13 Tanker Picks For 2018

It’s been a wild ride for many shipping stock investors over the past year, but Jefferies sees smooth sailing ahead for a number of tanker stocks in 2018.

The Analyst

Jefferies analyst Randy Giveans set Buy ratings for the following 13 tanker and LNG stocks:

• DHT Holdings Inc DHT, $6 target.
• Gener8 Maritime Inc GNRT, $10 target.
• Tsakos Energy Navigation Ltd. TNP, $6 target.
• Ardmore Shipping Corp ASC, $11 target.
• Capital Product Partners L.P. CPLP, $5 target.
• Scorpio Tankers Inc. STNG, $5 target.
• Golar LNG Limited (USA) GLNG, $39 target.
• GasLog Ltd GLOG, $28 target.
• Dynagas LNG Partners LP DLNG, $19 target.
• GasLog Partners LP GLOP, $28 target.
• Golar LNG Partners LP GMLP, $26 target.
• StealthGas Inc. GASS, $7 target.
• Navigator Holdings Ltd NVGS, $15 target.

The Thesis

According to Giveans, the shipping industry is well-positioned for a huge year in 2018.

“For the first time in at least 10 years, we expect capacity shortages with demand growth outpacing supply growth in every shipping sector under coverage in 2018, resulting in YOY improvements in both charter rates and asset values with the biggest winners expected to be in LNG shipping and the refined products tanker market,” he said in a note.

Although Giveans is bullish on all of the above tanker and LNG stocks, he said investors can expect LNG carriers, refined products tankers and dry bulk carrier stocks to perform particularly well give their recent weakness.

Price Action

Here’s how the stocks mentioned above were trading on Monday following the bullish commentary:

• DHT Holdings was down 0.2 percent.
• Gener8 Maritime was up 3.7 percent.
• Tsakos Energy was up 2.3 percent.
• Ardmore Shipping was down 0.6 percent.
• Capital Product was up 1.7 percent.
• Scorpio Tankers was up 1.5 percent.
• Golar LNG was up 5.6 percent.
• GasLog was up 4.2 percent.
• Dynagas LNG was up 2.2 percent.
• GasLog Partners was up 24 percent.
• Golar LNG was up 7.0 percent.
• StealthGas was up 2.0 percent.
• Navigator Holdings was up 3.9 percent.

Related Links:

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