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UPDATE: Morgan Stanley Reiterates on Knightsbridge Tankers Limited Following Capesize Acquisition

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In a report published Tuesday, Morgan Stanley analyst Fotis Giannakoulis reiterated an Overweight rating on Knightsbridge Tankers Limited (NASDAQ: VLCCF), and raised the price target from $9.50 to $12.00.

In the report, Morgan Stanley noted, “VLCCF acquired 6 Capesize vessels from companies associated with John Fredriksen, 5 newbuild ships on order at a Chinese yard from FRO 2012 with scheduled for delivery by 3Q14 and one 2013-built from a private affiliate. VLCCF will pay $61m per newbuild and $55m for the delivered vessel, for a total of $360m. This will be funded with $186m of VLCCF shares issued at $10/sh, $24m from cash on hand, and VLCCF will assume $150m in remaining installments to the yard. VLCCF intends to finance each vessel with $30m in debt.”

Knightsbridge Tankers Limited closed on Monday at $11.23.

Latest Ratings for VLCCF

DateFirmActionFromTo
Dec 2014Clarkson Capital Markets DowngradesBuyHold
Oct 2014GMP SecuritiesInitiates Coverage onBuy
Jun 2014Canaccord GenuityInitiates Coverage onHold

View More Analyst Ratings for VLCCF
View the Latest Analyst Ratings

Posted-In: Fotis Giannakoulis Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

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