NEW YORK (TheStreet) -- Shares of Frontline (FRO) were gaining, higher by 5.61% to $3.01 in late morning trading Wednesday, after analysts at Morgan Stanley raised their rating on the oil tanker shipping company this morning.
Analysts at the firm upgraded Frontline to "equal weight" from "underweight" with a higher price target of $3 from its prior $2.50.
Morgan Stanley cited a balanced risk/reward, manageable liabilities, and leverage to an improving tanker market for its higher rating and price objective.
Bermuda-based Frontline is a shipping company engaged primarily in the ownership and operation of oil tanker.
The company operates oil tankers through subsidiaries and partnerships located in the Bahamas, Bermuda, the Cayman Islands, India, the Isle of Man, Liberia, Norway, the U.K., and Singapore.
Frontline's principal focus is the transportation of crude oil and its related refined dirty petroleum cargoes for oil companies and oil trading companies.
Separately, TheStreet Ratings team rates FRONTLINE LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTLINE LTD (FRO) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: