Ahead Of The Bell: Frontline Shares Upgraded

NEW YORK (AP) — An analyst Monday upgraded the stock of Frontline Ltd. because the operator of ocean-going freighters has been able to achieve above-average day rates and reduce financing concerns.

FBR Capital Markets analyst Robert MacKenzie raised his rating to "Market Perform" from "Underperform" and increased his price target to $23 from $14.

He said the Bermuda-based company, the world's largest operator of cargo ships ranging from 160,000 dry weight tons to 319,999 dry weight tons, is getting day rates that beat the industry's spot market rates by more than 65 percent.

"We expect this premium to continue in proceeding quarters, albeit to a lesser degree," MacKenzie said in a client note, adding that Frontline has "strong commercial management operations."

In addition, Frontline has strengthened its balance sheet by canceling orders for new vessels and arranging extra financing.

In premarket trading, shares fell 47 cents, or 2 percent, to $22.79.