Jefferies Maintains A Hold Rating on Tsakos (TNP)
Jefferies & Co. has reiterated its “Hold” rating on Tsakos Energy Navigation (NYSE: TNP). Tsakos (TNP) reported its 1Q10 EPS at 14 cents, which was below Street consensus of 17 cents, but exceeded Jefferies’ estimates. Jefferies said that the company is likely to benefit from its asset sales.
Jefferies increased its 2010 EPS estimates for the company due to better than expected first-quarter results. However, 2011 EPS estimates have been adjusted southward on account of increased drydocking expectations.
The report states that the company's stock is fairly valued at its current price level, and is likely to remain rangebound in the coming months. At the same time, the stock has very limited downside risk, as the shares are trading at a discount to its NAV. The company is also likely to benefit from its decision to not pursue a drilling rig acquisition.
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