Frontline (FRO) Price Target Raised by $10 at BTIG. Here is Why

With an annual dividend yield of 9.00%, Frontline plc (NYSE:FRO) is included among the 10 Energy Stocks with Highest Dividends.

Frontline plc (NYSE:FRO) is a world leader in international seaborne transportation of crude oil. The company has one of the world’s largest fleets of VLCC and Suezmax tankers, and LR2/Aframax tankers.

On June 24, BTIG upped its price target on Frontline plc (NYSE:FRO) from $45 to $55, while maintaining a ‘Buy’ rating on the shares. The target boost, which reflects a robust upside of over 55% from the current levels, comes as part of the analyst firm’s broader research note on Oil and Tanker markets.

BTIG noted that although the 60-day waiver on Iranian oil sanctions has boosted oil exports from the Arabian Gulf, a lot more work is required before the conventional tanker fleet starts transporting cargo from the region. The firm also expects the crude tanker demand to strengthen in the post-war period, since major crude importers from Asia will look to replenish their inventories.

Notably, the cost of hiring tankers in the Persian Gulf has nearly doubled following the US-Iran MoU, as the region’s producers scramble to move the oil that had been stranded for months.

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