Four Stocks Stifel Just Started Coverage On

Analysts at Stifel on Wednesday initiated coverage of

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Shares of Admore were initiated with a Buy rating and $16 price target. The analyst, Benjamin Nolan, is expecting the refined product tanker charter rate environment to remain "firm" over the next two years. Since Admore has "substantial leverage" to the sector, shares are expected to appreciate "materially" on strong cash flow and earnings. Nolan also noted that shares are trading at a 6.8x multiple to his 2016E EV/EBITDA which is below the peer average multiple of seven to eight. The analyst added that as the market fundamentals improve, the valuation gap will close and shares could even return to its historical peak of eight to nine. Finally, the company's low share count, "moderate" leverage and exposure to spot rates, the analyst suggested that the company has the "highest degree of operating leverage" to changes in spot rates.

Shares of DHT Holdings were initiated with a Hold rating with no assigned price target. The analyst, Benjamin Nolan, noted that crude tanker rates are likely to remain "strong" through 2015 as OPEC continues to maximize its production. However, downside risk exists for 2016 and potentially beyond from a potential OPEC production cut and a growing tanker fleet. Nolan continued that DHT is "one of the few and largest" crude tanker pure plays in the equity market. As such, so long as OPEC maintains high levels of production, crude demand will remain firm. In fact, low oil prices have driven demand growth while more oil is moving from the Atlantic to the Pacific which requires more shipping capacity per barrel. However, crude tanker supply growth has been less than one percent per year in 2014 and 2015 and the analyst is now expecting a four percent growth in 2016 and "potentially that much again" the following year. As such, this will create a "more challenging supply hurdle."

Shares of Euronav were initiated with a Hold rating with no assigned price target. The analyst, Benjamin Nolan, noted that Euronav faces "few" potential upside catalysts in the near-term. Identical to his analyst on DHT, the company also faces similar downside risk from a potential OPEC production cut and supply growth in the segment.

Shares of First Trust were initiated with a Buy rating with no assigned price target. The analyst, Alexander Reiss, noted that he is "attracted" to the fund because of its high distribution rate, large proportion of Qualified Dividend Income (QDI) eligible distributions in the past, moderate interest rate sensitivity relative to peers, and a "wide" discount to its NAV (net asset value). The analyst also pointed out that shares of First Trust are also "attractively valued" given its 9.49 percent discount.