Tsakos Energy (NYSE:TNP) Tanker Market Should Lead them in 2011

With difficult operating challenges in the third quarter of 2010, FBR Capital has lowered their price target on Tsakos Energy (NYSE:TNP), but see upside based on a recovery in the tanker market in 2011.

FBR said, "We maintain our rating, and we are lowering our price target following Tsakos' recent 3Q10 earnings release and FBR-sponsored management teach-in. The fourth quarter will likely provide a difficult operating environment similar to 3Q10, but we still expect upside in 2011 from a recovery in the tanker market. The company also announced its intention to use the proceeds from its recent equity offering for the construction of two "high-spec" crude tankers. While we believe putting the otherwise dilutive equity to work is a positive and while the 15-year contracts will add earnings power down the road, there are still several details that need to be worked out."

Tsakos was trading at $10.29, gaining $0.13, or 1.28 percent as of 12:36 PM EST. FBR lowered their price target from $18 to $15, although maintain their long-term outlook on them.