Oil Tanker Rates Surge Threefold, But Longevity Is Uncertain.
Rising Oil Prices: Oil prices have been increasing this year due to escalating geopolitical risks in regions such as Venezuela, Russia, and Iran.
Market Volatility: News headlines can cause significant fluctuations in crude oil prices, sometimes changing by several dollars within a single day.
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- Stock Performance: DHT Holdings Inc's shares recently rose to $15.49, surpassing the analyst-set 12-month target price of $15.44, indicating increased market confidence and potentially attracting more investor interest.
- Analyst Reactions: When a stock reaches its target price, analysts may either downgrade their valuation or raise their target; currently, 7 analysts have target prices ranging from $12.80 to $18.00, reflecting varied market perspectives on the company's future performance.
- Market Signal: The breach of the average target price provides investors with a strong signal to reassess the company, prompting them to consider whether the current valuation is justified or if it’s time to take profits to mitigate risk.
- Analyst Ratings: According to Zacks data, the average rating for DHT Holdings ranges from 1 to 5, indicating the overall market sentiment towards the stock, which further influences investor decision-making.
Increased Investments: There has been a notable rise in holdings across various sectors, indicating a growing confidence among investors.
Market Trends: The increase in holdings reflects broader market trends, suggesting potential economic recovery and stability.
Rising Oil Prices: Oil prices have been increasing this year due to escalating geopolitical risks in regions such as Venezuela, Russia, and Iran.
Market Volatility: News headlines can cause significant fluctuations in crude oil prices, sometimes changing by several dollars within a single day.
- Quarterly Profit Performance: DHT Holdings reported a net profit of $66.1 million in Q4, translating to earnings of 41 cents per share, indicating strong performance in the tanker market and likely boosting investor confidence.
- Revenue Growth: The company achieved revenue of $144.2 million in Q4, with adjusted revenue at $118.1 million, reflecting enhanced competitiveness and operational efficiency, which may attract more investor interest.
- Annual Performance Review: For the full year 2022, DHT Holdings reported a net profit of $211.1 million, or $1.31 per share, with total revenue of $370.3 million, showcasing the company's sustained growth potential in the tanker industry.
- Market Outlook: With the recovery of global energy demand, DHT Holdings' robust financial performance may provide funding for future expansion and investments, further solidifying its position in the industry.
- Earnings Announcement Schedule: DHT Holdings is set to release its Q4 2023 earnings report on February 4 after market close, with a consensus EPS estimate of $0.40, reflecting a 17.6% year-over-year increase, indicating sustained profitability that could positively impact stock prices.
- Revenue Growth Expectations: The consensus revenue estimate stands at $116.28 million, representing a 36.0% year-over-year growth, which highlights the company's strong performance in the shipping market and may attract increased investor interest.
- Performance Beat Record: Over the past year, DHT has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, reinforcing market confidence in its financial health and future prospects.
- Estimate Revision Trends: In the last three months, both EPS and revenue estimates have seen two upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on DHT's future performance, potentially driving stock price increases.
- Rating Downgrade: ABG Sundal Collier downgraded DHT Holdings from Buy to Hold with a price target of $14.30, anticipating lower earnings primarily due to the recent sale of DHT Bauhinia for $51.5 million.
- Revenue Expectations Missed: DHT reported that 66% of available revenue days for Q1 were booked at an average day rate of $51,500, failing to meet market expectations and leading to a pessimistic outlook for future revenues.
- EBITDA Forecast Reduction: Analysts lowered their Q1 EBITDA projection by 14% to $110 million, reflecting reduced earnings capacity and disappointing Q1 2026 bookings, with revised EBITDA forecasts of $460 million for FY 2026 and $426 million for FY 2027.
- Market Reaction: DHT Holdings saw a 0.6% decline in Tuesday's trading, indicating investor concerns over the company's future profitability, particularly amid volatility in the tanker market.









