BofA (BAC) Raises Teekay's (TNK) Rating on Overdone Selloff

The selloff of shares of Teekay Tankers Ltd. (TNK) has been overdone according to Bank of America (NYSE:BAC), which raised its rating on the company from "Underperform" to "Buy."

Teekay should also benefit from the excess naphtha on the market, as refiners in Europe are blending it into gasoline to ship to the American market.

Naphtha is lightest and most volatile fraction of petroleum, which can be converted into oil or ethylene. That market has plunged after the earthquake in Japan, leaving a glut of naphtha in the market to deal with as demand falls.

Teekay was trading at the highest intraday levels since May 2009, rising to $10.86 at one point.

They are trading at $10.67, gaining $0.92, or 9.44 percent, as of 2:28 PM EDT.