Frontline cut to In Line at Evercore ISI on reversion risk

Evercore ISI downgraded Frontline (FRO) to In Line from Outperform with a price target of $38, down from $46, as part of a broader research note on shipping names. Investor interest in tanker stocks has been greater over the last two months than at any time since the floating storage boom of April 2020, but as a perfect storm of a strong winter into a cornering of the VLCC market into Venezuelan oil moving on compliant ships into the closing of the Strait of Hormuz played out, many stocks already reflected much of the earnings upside and investors have a propensity to fade record rates, the analyst tells investors in a research note.