SFL: Earnings Momentum, Fleet Upgrading, and High-Yield Cash Flows Support Buy Rating

Gregory Lewis, an analyst from BTIG, maintained the Buy rating on SFL Corporation. The associated price target was raised to $12.00.

Gregory Lewis has given his Buy rating due to a combination of factors tied to earnings momentum, asset repositioning, and an attractive income profile. He highlights that SFL outperformed earnings expectations while actively upgrading its tanker fleet mix, shifting modern Suezmax vessels into the spot market to capture elevated day rates and preserving flexibility to lock in future multiyear charters at stronger levels.

Lewis also underscores SFL’s robust balance between shareholder returns and growth, noting the high dividend yield, ongoing buyback capacity, and solid liquidity to fund contracted newbuild capex. In addition, he points to the sizable, long-duration contract backlog that supports cash flow visibility, and sees valuation as compelling with the stock offering an above-market dividend yield and trading at a reasonable EBITDA multiple relative to forward earnings power.

Lewis covers the Energy sector, focusing on stocks such as Scorpio Tankers, Frontline, and DHT Holdings. According to TipRanks, Lewis has an average return of 20.0% and a 54.97% success rate on recommended stocks.