Jefferies Downgrades Nordic American Tanker to "Underperform" (NAT)

Jefferies Downgrades Nordic American Tanker to “Underperform” (NAT)


Jefferies analysts believe that shares of Nordic American Tanker Ltd (NAT) are overvalued and investors have undeserved optimism in the stock. As such, the analysts downgraded NAT on Tuesday.

The analysts downgraded NAT from “Hold” to “Underperform” and cut the price target from $7.00 to $5.00. This new price target suggests a 49% downside to the stock’s Monday closing price of $9.72.

A Jefferies analyst noted, “With NAT shares having increased ~40% over the past 7 weeks due to the surge in WAF-US Suezmax charter rates, we are downgrading NAT shares to Underperform from Hold as NAT shares now trade at ~200% of estimated NAV, a premium we believe is unsustainable once the surge in WAF-US Suezmax spot charter rates inevitably subsides.”

Nordic American Tanker shares were down 45 cents, or 4.63%, during early morning trading on Tuesday. The stock is up 6.17% year-to-date.

The Bottom Line
Shares of Nordic American Tanker (NAT) offer a dividend yield of 6.58% based on last night’s closing price of $9.72 and the company’s annualized dividend payout of 64 cents per share.

Nordic American Tanker Ltd (NAT) is not recommended at this time, holding a DARS™ Rating of 2.8 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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