Update (9:35 a.m.): Updated with Friday market open information.
NEW YORK (TheStreet) -- UBS initiated coverage on DHT Holdings (DHT) with a "buy" rating and set a $10 target price. The firm cited an uptick in spot rates and upside from positive crude trends as the reasons for the upgrade.
The stock was rising 2.84% to $7.98 at 9:34 a.m. on Friday.
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Separately, TheStreet Ratings team rates DHT HOLDINGS INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DHT HOLDINGS INC (DHT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DHT's very impressive revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues leaped by 50.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 217.07% and other important driving factors, this stock has surged by 91.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 24.66 is very high and demonstrates very strong liquidity.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DHT HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: DHT Ratings Report