Lehman Bros.: General Maritime Is A Strong Buy

Lehman on Monday started coverage of oil tanker charterer Maritime with a strong buy rating and a 12-month price target of $25.

"We expect charter hire rates to remain firm and recover through the remainder of the year as oil production volumes from Iraq and OPEC increase requiring transportation service," said a research note.

Iraq, which in June cut oil exports to protest the U.N. administered oil-for-food program put into place after the invasion of Kuwait in 1990, hopes to sign a deal this week and return its oil to the market, according to its U.N. envoy.

Shares of General Maritime closed at $13.05 on Friday, just off its 52-week low of $12.20 and below its high of $18.