Euronav Initiated At Outperform By Credit Suisse, Called 'Master Of The House'

In a report published Thursday, Credit Suisse analysts initiated coverage of

with an Outperform rating and a price target of $20. The company is well positioned to benefit from an upturn in the tanker market. Following the six-year-long tanker trough, the VLCC market has been showing signs of a recovery, with a 100 percent increase in tanker rates in 2014. In addition, expectations of increasing global oil demand and manageable fleet growth "point to an extended up-cycle," the analysts said. According to Credit Suisse, "The supertanker market (where EURN plays) is a highly cyclical market. EURN's position as a dominate VLCC and Suezmax spot player makes it the beta crude tanker stock for the tanker market up-cycle." The analysts also believe that the company's net debt to capital ratio offers the management flexibility to undertake fleet acquisitions, as well as return cash to shareholders, in the event of an up-cycle. The company intends to pay out dividends worth 80 percent of its net income in 2015.