Frontline upgraded to Buy on dividend potential at Deutsche Bank

Deutsche Bank upgraded Frontline to Buy from Hold with a price target of $26, up from $17. The analyst cites share price upside and dividend potential for the upgrade. Average spot rates for both the crude tanker and refined product tanker segments averaged higher sequentially for the quarter, the analyst tells investors in a research note. The firm says market conditions in the product tanker segment remain healthy, with supportive supply and demand fundamentals going into 2024. Deutsche assumes Frontline shares will trade at a premium to net asset value based on historical performance, as well as on the company’s custom of paying 80% of net income as a quarterly dividend.