Seven Changes to Tanker Company Forecasts

Overseas Shipholding Upgraded by JPMorgan on Valuation Change
By Alaric Nightingale
July 6 (Bloomberg)

Shares of Overseas Shipholding Group Inc., the largest U.S.-based oil-tanker owner, were upgraded by analysts at JPMorgan Chase & Co., who said they previously valued the company's fleet of ships incorrectly.

Analysts in New York led by Jonathan Chappell raised their rating to ``overweight'' amid seven changes to their forecasts for tanker companies. The bank's recommendation on Overseas Shipholding had been ``neutral,'' according to data compiled by Bloomberg.

Management meetings uncovered value ``previously ignored by us'' in the vessels New York-based Overseas Shipholding has leased from other shipping lines, ``rendering the shares still inexpensive,'' the analysts wrote in a report published today.

JPMorgan's other actions were all changes to profit estimates. Frontline Ltd., the world's biggest oil-tanker company by capacity, is likely to have made more in the second quarter than the bank previously expected because of higher-than-estimated rental rates for its vessels.

JPMorgan cut its earnings estimates for General Maritime Corp., Tsakos Energy Navigation Ltd. and Top Tankers Inc., and raised the estimates for Nordic American Tanker Shipping Ltd. and Double Hull Tankers Inc.

FRO, GMR, OSG, TNP, DHT, NAT, TOPT