Performance Shipping, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Tate Sullivan from Maxim Group reiterated a Buy rating on the stock and has a $4.00 price target.
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Tate Sullivan’s rating is based on a combination of factors including anticipated growth in tanker rates and fleet expansion. The U.S. sanctions on Russian oil companies and increased OPEC production are expected to drive higher tanker rates, which will positively impact Performance Shipping’s revenue. Additionally, the company is set to expand its fleet with the acquisition of two ships and the delivery of two newbuilds, which is expected to enhance its operational capacity.
Despite a temporary reduction in revenue and earnings forecasts for the third quarter of 2025 due to ship downtime, the outlook for the fourth quarter of 2025 and 2026 is more optimistic. The increased tanker rates and fleet growth are expected to boost revenue and earnings, supporting a higher book value per share. Trading at a low multiple of its adjusted book value per share, the stock presents a compelling investment opportunity, justifying the Buy rating and a price target of $4.00.
In another report released on October 21, TR | OpenAI – 4o also upgraded the stock to a Buy with a $2.00 price target.