Credit Suisse Upgrades Tsakos Energy, Projects Tanker Growth

In a report published Thursday, Credit Suisse analysts upgraded the rating on

from Neutral to Outperform, while raising the price target from $9 to $13. The analysts believe the company is well positioned to benefit from a tanker up-cycle. "With its fleet of 50 vessels on a mix of spot and time charters (8 with profit share) TNP is well positioned to benefit from the crude and product tanker up-cycle," the analysts said. The analysts expect tanker rates to increase 40-50 percent through 2015, with another 10-20 percent rise in 2016. With 22 ships in the spot market and another nine rolling of contract during 2015, Tsakos is well positioned to boost the upside to the tanker market further. "However, we expect management to stick to its conservative chartering strategy – a balanced mix of spot/term work," the analysts added. The EPS estimates for 2015 and 2016 have been raised to reflect the rising tanker rates.