Nordic American Tankers downgraded to Hold from Buy at Jefferies

Jefferies downgraded Nordic American Tankers to Hold from Buy with an unchanged price target of $4. Tanker stocks have pulled back after peaking in May, with investor sentiment softening due to seasonally weak spot rates, compounded by uncertainty over demand, refinery runs, elections and OPEC+ decisions, the analyst tells investors in a research note. The firm sees a “continued tight balance” across both tanker segments going forward, with crude slightly tighter and products moderately looser. It downgraded Nordic American Tankers saying age of fleet is becoming a concern with one-third of the company’s vessels built pre-2010, “which is having a noticeable impact on realized freight rates.”