In an investor note on the oil tanker sector this morning, JP Morgan (NYSE:JPM) said it does not see the sector improving before the end of 2009. The firm sees second quarter earnings coming in lower than expected for most companies in the sector, as the environment for shippers has been less than favorable.
In the note to investors, JP Morgan downgraded shares of tanker management company Teekay (NYSE:TK) from Neutral to Underweight and also downgraded shares of DHT Maritime (NYSE:DHT) from Overweight to Neutral.
While JP Morgan was down on the sector, it did upgrade a few firms on valuation.
Knightsbridge Tankers (VLCCF) and Tsakos Energy Navigation (NYSE:TNP) were both upgraded from Underweight to Neutral. And Teekay Tankers (NYSE:TNK) was upgraded from Neutral to Overweight.
Of the five companies mentioned in the report, shares of DHT Maritime fell the hardest, dropping more than six percent in morning trading, while shares of Teekay Tankers gained the most, climbing more than five percent.
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