Zacks Investment Research Upgrades Frontline (FRO) to Strong-Buy

Frontline (NYSE:FRO) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Wednesday. The firm currently has a $6.75 target price on the shipping company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 5.97% from the stock’s previous close.

According to Zacks, “FRONTLINE LTD’s business strategy is primarily based upon the following principles: emphasising operational safety and quality maintenance for all of its vessels; complying with all current and proposed environmental regulations; outsourcing technical operations and crewing; achieving low operational costs of vessels; achieving high utilisation of its vessels; competitive financing arrangements; and develop relationship to main charterers. “

Several other equities analysts have also issued reports on the company. Jefferies Financial Group initiated coverage on Frontline in a research report on Monday, October 1st. They set a “hold” rating and a $6.00 target price for the company. BTIG Research initiated coverage on Frontline in a research report on Thursday, September 27th. They set a “neutral” rating for the company. Deutsche Bank boosted their target price on Frontline from $5.00 to $6.00 and gave the stock a “hold” rating in a research report on Tuesday, August 28th. ValuEngine upgraded Frontline from a “strong sell” rating to a “sell” rating in a research report on Tuesday, July 24th. Finally, Danske upgraded Frontline from a “sell” rating to a “buy” rating in a research report on Thursday, November 15th. Five analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $6.13.

Frontline stock opened at $6.37 on Wednesday. The stock has a market cap of $1.01 billion, a PE ratio of -212.33 and a beta of 0.97. Frontline has a 1 year low of $3.79 and a 1 year high of $7.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.34 and a quick ratio of 1.34.

Frontline (NYSE:FRO) last posted its earnings results on Friday, November 16th. The shipping company reported ($0.05) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.13) by $0.08. The company had revenue of $89.21 million during the quarter, compared to analyst estimates of $79.90 million. Frontline had a negative return on equity of 3.85% and a negative net margin of 40.17%. During the same period in the previous year, the company earned ($0.08) EPS. Equities analysts forecast that Frontline will post -0.29 EPS for the current year.

Large investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC lifted its holdings in shares of Frontline by 34.2% during the 2nd quarter. Renaissance Technologies LLC now owns 1,559,601 shares of the shipping company’s stock valued at $9,101,000 after purchasing an additional 397,101 shares in the last quarter. Marshall Wace LLP lifted its holdings in shares of Frontline by 589.8% during the 2nd quarter. Marshall Wace LLP now owns 774,406 shares of the shipping company’s stock valued at $4,510,000 after purchasing an additional 662,138 shares in the last quarter. Segantii Capital Management Ltd bought a new position in shares of Frontline during the 2nd quarter valued at about $143,000. Russell Investments Group Ltd. lifted its holdings in shares of Frontline by 71.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 433,448 shares of the shipping company’s stock valued at $2,531,000 after purchasing an additional 180,682 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of Frontline by 3.7% during the 2nd quarter. Northern Trust Corp now owns 2,441,655 shares of the shipping company’s stock valued at $14,260,000 after purchasing an additional 86,696 shares in the last quarter. Institutional investors and hedge funds own 16.85% of the company’s stock.

About Frontline

Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. As of December 31, 2017, the company's fleet consisted of 61 vessels, including VLCC, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton.

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