Jefferies & Company Lowers Tsakos Energy Navigation (TNP) Price Target To $17
March 18, 2010 10:22 AM
Jefferies & Company analysts Douglas J. Mavrinac, Benjamin Nolan and Nicholas Norstrom maintained their Hold rating for shares of Tsakos Energy Navigation Ltd (NYSE: TNP) but lowered the price target from $18 to $17.
The analysts said that they believed shares of Tsakos Energy Navigation Ltd were currently fairly valued and that potential updside was limited by the company's spot market exposure.
The analysts also reduced their earnings estimates and said that Tsakos Energy Navigation Ltd's debt and its marginal borrowing capabilities would limit the company's ability to expand its fleet.
The Jefferies & Company analysts wrote, "while TEN does have ample cash on the balance sheet, the Company also has annual debt repayment obligations of over $100 million and remaining capital expenditure commitments of $215 million, which we believe limits TEN's ability to pursue acquisition opportunities."
