Seeking Alpha upgraded DHT Holdings, Inc. to a strong buy rating. The analyst cited robust first-quarter results and strong second-quarter guidance as primary drivers.
The report anticipates a significant increase in Very Large Crude Carrier (VLCC) rates. DHT Holdings currently operates as the only VLCC pure-play listed on the U.S. market.
The company holds $126 million in cash and a recently refinanced credit facility. These financials support a policy of paying out 100% of net income as dividends.
The analyst projects a fair value of $22.50 per share. This target suggests the stock could trade at 1.4 times its net asset value if rates rise as expected.
Approximately 50% of the fleet is currently on charter to provide operational stability. Recent company filings also revealed that the CFO and Technical Director exercised restricted stock units.