Is NAT a good stock to buy? We came across a bullish thesis on Nordic American Tankers Limited on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on NAT. Nordic American Tankers Limited’s share was trading at $6.06 as of April 20th. NAT’s trailing and forward P/E were 101.00 and 13.97, respectively according to Yahoo Finance.
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Nordic American Tankers (NYSE: NAT) is a Suezmax-focused tanker operator with a standardized fleet of 20 vessels, each capable of transporting ~1 million barrels of oil, positioning it as a direct beneficiary of shifts in global crude trade flows. The company has actively optimized its fleet, selling older ships while ordering two newbuilds for 2028 delivery, resulting in a relatively young fleet with an average age of ~11.4 years.
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NAT operates through a mix of spot and time charters, balancing exposure to volatile day rates with contracted revenue visibility. Industry dynamics remain supportive in the near term, with a global fleet of ~604 Suezmax vessels and a meaningful portion aging beyond 20 years, potentially limiting effective supply growth despite a visible orderbook through 2029.
Geopolitical disruptions—including tensions in the Middle East, the Russia-Ukraine conflict, and enforcement actions against shadow fleets tied to Iran and Venezuela—have tightened tanker supply and driven a sharp increase in Suezmax day rates. Rates surged over 100% across key routes in 2024–2025, with recent spikes reaching ~$186,000/day, while NAT has secured a portion of its fleet at ~$50,000–55,000/day, supporting strong near-term earnings. However, despite these favorable conditions, potential easing of sanctions on Russian oil and coordinated strategic reserve releases could moderate oil prices and shipping demand, introducing volatility into forward rate expectations.
Longer term, the outlook is mixed. Rising global oil demand, projected to exceed 105 million barrels/day by 2035, provides structural support for tanker utilization, but increasing vessel supply later in the decade may pressure rates. NAT’s low cash break-even of ~$9,000/day—well below industry averages—offers a significant margin of safety, enabling strong cash flow generation even in weaker markets.
Overall, the company is highly leveraged to exogenous factors, with near-term upside driven by geopolitical tailwinds but longer-term fundamentals dependent on fleet supply discipline and sustained oil demand growth.
Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke in October 2024, which highlighted the company’s expanding project backlog, AI-driven infrastructure demand, and reshoring-led industrial growth supported by regulatory tailwinds. KMI’s stock price has appreciated by approximately 28.73% since our coverage. Monte Investments shares a similar view but emphasizes on geopolitical disruptions and tightening tanker supply driving rate strength for Nordic American Tankers (NAT).
Nordic American Tankers Limited is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held NAT at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of NAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
