TEN, Ltd. downgraded to Hold from Buy at Jefferies

Jefferies downgraded TEN, Ltd. to Hold from Buy with a price target of $27, down from $31. Tanker stocks have pulled back after peaking in May, with investor sentiment softening due to seasonally weak spot rates, compounded by uncertainty over demand, refinery runs, elections and OPEC+ decisions, the analyst tells investors in a research note. The firm sees a “continued tight balance” across both tanker segments going forward, with crude slightly tighter and products moderately looser. While TEN shares trade significantly below net asset value, the company’s free cash flow generation is low due to a relatively higher debt ratio and sizable newbuilding commitments, contends Jefferies.