Teekay Tankers To Offer Dividend After Strong 3Q

Teekay Tankers Ltd. TNK hosted an investor day that was attended by Oppenheimer, who has reiterated its Outperform rating as a result from the meeting. In the research report, Oppenheimer writes "At the investor day for the Teekay companies, CEO-elect Brian Chan highlighted TNK's fleet expansion efforts and balanced chartering strategy, centered on growing distributable cash flow. TK recently offered 1 Aframax and 1 Suezmax to TNK, with an additional 17 vessels in the parent identified as suitable for drop-down. Management will also pursue growth through third parties, as evidenced by its recently announced 50/50 JV with Wah Kwong Shipping for a VLCC new build. With a superior dividend yield (11.1% 2011E) supported by above-average charter coverage, we believe the shares continue to offer an attractive total return profile." Oppenheimer also maintains its $14 price target on Teekay Tankers, which closed yesterday at $12.18.