Cautious Outlook on Teekay Tankers Amid Lower EPS Estimates and Market Uncertainties

Analyst Ken Hoexter of Bank of America Securities reiterated a Sell rating on Teekay Tankers (TNK – Research Report), retaining the price target of $39.00.

Ken Hoexter has given his Sell rating due to a combination of factors impacting Teekay Tankers. The primary reason is the reduction in earnings per share (EPS) estimates for the first quarter of 2025 and the full year, driven by lower-than-expected crude tanker market rates. Specifically, the Suezmax and Aframax/LR2 spot time-charter equivalent rates have been adjusted downward, reflecting softer market conditions.
Additionally, while there is a positive development with OPEC+ increasing oil production, which could benefit Teekay Tankers, there are concerns about potential market disruptions. These include the possibility of increased vessel supply if sanctions on Russia’s fleet are lifted, and the influence of the parent company. These factors contribute to maintaining a cautious outlook with a price objective of $39, slightly below the current market price.

Hoexter covers the Industrials sector, focusing on stocks such as Westinghouse Air Brake Technologies, XPO, and Canadian Pacific Kansas City. According to TipRanks, Hoexter has an average return of 0.4% and a 43.86% success rate on recommended stocks.