BofA Cuts Oil Tankers, OMI to Neutral
October 20, 2006
According to Reuters, Bank of America Securities cut its near-term industry outlook on oil tankers to neutral from overweight, citing a reduction in crude throughput by refiners to ease a global refined product glut. Shipping rates could underperform fourth-quarter expectations by 20 percent, the brokerage added. On OMI, the brokerage said it does not expect the company's value to materially exceed current levels before year end. Shares of OMI, the owner and operator of crude oil tankers, have increased over 25 percent in value this year to date, outperforming its peers by over 20 percent and the S&P 500 by 18 percent, it added.
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