Euronav Remains Citi's Top Pick Among Tankers

According to the analysts, tanker rates declined about 25 percent in the second quarter of this year and are expected to drop a bit further in the third quarter before a "typical seasonal rally in 4Q."

The analysts expect the rates to still be in line with their estimates of $40,800/day and $45,500/day for the 2H16 and full 2016 year, respectively, which are "healthy and very cash flow generative for companies like Euronav and Gener8."

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The analysts mentioned Euronav as their top pick, changing the 2Q EPS estimate to 33c from 38c on rate adjustments, while the EPS estimate for Gener8 was reduced to 55c from 62c driven by the rate decrease, but offset by lower interest rates.

Both stocks' ratings were maintained at Buy, and the price targets were likewise unchanged — Euronav at $14.00 and Gener8 at $12.