Analysts see high growth rates for US-listed Tsakos Energy Navigation (TEN) over the next three years, as well as a target price of 31 dollars per share (72% above its current value).
According to a survey by Simply Wall St., which took into account a series of analyst reports on TEN’s progress, by Dr. Nikos Tsakos, the average target price for the company stands at 31.33. This price is based on analysts’ expectations for future growth in profits and margins.
It is noted that TEN has invested 1 billion dollars in the construction and acquisition of modern eco and dual-fuel tankers, while in the coming years it is expected to invest another 1 billion in ships with the latest environmental technology.
The researchers also attach particular importance to the contracted revenues that TEN has for the coming years, which amount to 2 billion dollars. The company, which is the oldest Greek-owned shipping company listed on the US stock market, has a fleet of 74 ships (tankers of all types and LNG carriers), of which 12 are under construction, with a total carrying capacity of 8.9 million dwt.
Key conclusions
TEN’s fleet renewal strategy and expansion are boosting revenues and improving net profit margins, due to high demand. At the same time, it emphasizes that financial stability is ensured through future contracts, debt reduction and enhanced dividends, supporting strong future profits and a potential increase in share valuation.
Analysts pointed out that Tsakos Energy Navigation’s strategic choice to renew its fleet with state-of-the-art vessels, including dual-fuel vessels, positions the company for future revenue growth as it responds to growing demand for such vessels from major customers such as ExxonMobil, Equinor and Shell. This fleet modernization is expected to positively impact future earnings and net margins. “Its long-standing relationships with blue-chip customers suggest strong demand for its services, leading to increased revenue opportunities and improved net margins over time,” Simply Wall St. reports.
The ongoing fleet renewal program, which currently includes 21 ships, including additional new ships due for delivery in 2025, strengthens TEN’s market position and provides further revenue opportunities, which are also expected to boost the company’s cash flow.
Financial health
Finally, the company’s efforts to improve liquidity, significantly reduce debt and increase dividends indicate financial health, which will contribute to strong future earnings and potentially higher share valuations, in line with those of its peers. Analysts expect profit margins to increase from 19.3% to 31.2% in three years.
