UPDATE: RS Platou Markets Downgrades Frontline Following Mixed 2Q13 Results
In a report published Tuesday, RS Platou Markets analyst Herman Hildan downgraded the rating on Frontline Ltd. (NYSE: FRO) from Neutral to Sell, and lowered the price target from $2.00 to $1.60.
In the report, RS Platou Markets noted, “Frontline reported 2Q13 numbers above our expectations but below consensus estimates. Weaker than expected liquidity was negative, but we still believe the situation can be bridged until maturity of the bonds in 2015 with the current ATM offering, termination of newbuilds and sale of FRNT shares. However, on the assumption that management executes on liquidity improving measures, the refinancing is likely to have a significant dilutive impact on current shareholders. Consequently, we downgrade to SELL and target USD 1.6/share reflecting fair equity value at $37,500 per day long-term rates.”
Frontline Ltd. closed on Friday at $2.42.
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