Shares of Frontline (NYSE:FRO) surged nearly 15% in Monday’s after-hours trading. The upward movement comes after the tanker company terminated the all-stock merger agreement with Euronav NV (EURN). However, there was no specific reason given for the deal’s failure.
The $4 billion deal was announced in July 2022. Both companies expected that the merger would create a global leader in oil tanker operators, with a solid balance sheet position.
Frontline CEO Lars H. Barstad stated that both businesses have a sizable fleet of crude oil and product tankers and “are already enjoying economies of scale as evidenced by our respective recent financial reports.”
Should You Buy FRO Stock?
Overall, the Street is optimistic about the stock. FRO enjoys a Strong Buy consensus rating based on three Buys and one Hold. The average Frontline price target of $17.11 implies 51% upside potential from the current level. Shares have gained more than 41% over the past six months.
Moreover, hedge funds also increased their holdings of FRO stock by 4.6 million shares in the last quarter. Overall, Frontline scores a “Perfect 10” on TipRanks’ Smart Score rating system, pointing to its potential to outperform.
