Euronav NV downgraded to Hold from Buy at Jefferies

Jefferies downgraded Euronav NV to Hold from Buy with a price target of $18, down from $21. Red Sea diversions are on the rise and are having a significant impact on vessel capacity, the analyst tells investors in a research note. The firm anticipates record Q4 results from liquefied petroleum gas players, sequentially stronger results for tankers and dry bulk, steady earnings for liquified natural gas and weak results for containers “though coupled with improved guidance.” Jefferies says Euronav will be taking on significant capital expenditures and a higher debt load in the coming years as it acquires identified non-tanker assets. CMB, as the new principal shareholder, will be conducting a mandatory tender offer for all outstanding shares at $17.86 per share, which was triggered after acquiring Frontline’s shares, it adds.