Analysts Offer Insights on Services Companies: Nordic American Tanker (NYSE: NAT) and Liberty Global A (NASDAQ: LBTYA)

By Jason Carr

Companies in the Services sector have received a lot of coverage today as analysts weigh in on Nordic American Tanker (NYSE: NAT) and Liberty Global A (NASDAQ: LBTYA).

Nordic American Tanker (NYSE: NAT)

Maxim Group analyst James Jang reiterated a Sell rating on Nordic American Tanker (NYSE: NAT) today and set a price target of $3. The company’s shares closed on Friday at $4.21, close to its 52-week low of $4.19.

Jang observed:

“Nordic American Tankers released 3Q17 earnings on Friday, November 3, 2017, post-close, earlier than the previously communicated release date of Monday, November 6, 2017. The company performed well-below our estimates and consensus expectations with revenues coming in at $23.7 million, net loss of $27.9 million, operating loss of ($0.34) per share, and EBITDA at negative $1 million. Furthermore, on Friday, November 3, 2017, within NAT’s Notice of the Annual Shareholders’ Meeting (LINK), the company disclosed its intention of reducing the paid-in capital account and reclassifying the $215.4 million into its contributed surplus line item. We are perplexed by this proposal and do not understand the financial reason behind this maneuver.”

According to TipRanks.com, Jang is a 3-star analyst with an average return of 4.9% and a 42.9% success rate. Jang covers the Services sector, focusing on stocks such as Dynagas LNG Partners LP , Eagle Bulk Shipping, and Navigator Holdings.

Nordic American Tanker has an analyst consensus of Moderate Sell, with a price target consensus of $3.50.

Liberty Global A (NASDAQ: LBTYA)

In a report released today, Jeffrey Wlodarczak from Pivotal Research assigned a Buy rating to Liberty Global A (NASDAQ: LBTYA), with a price target of $44. The company’s shares closed on Friday at $30.51.

Wlodarczak observed:

“We expect as management delivers in 4Q they will begin to rebuild their operational reputation with Wall Street which should help boost the stock. We expect a continued acceleration in results in ’18 on the back of: 1) very healthy synergy contribution from Telenet’s BASE acquisition, 2) the full benefit of a successful U.K. price hike (and the reversal of the effects of retention marketing), 3) increasing contributions from U.K.’s Project Lightning, 4) Liberty Go additional contributions and 5) Germany. This is offset partially offset by higher UK taxes that flow through EBITDA and what appears to be an increasingly competitive environment in Switzerland (and higher exclusive Swiss sports programming costs beginning in 3Q’17). We were heartened by we have argued for the potential sale of that asset, although in the short/medium term management’s focus on “strategic alternatives” for Switzerland on the 3Q call.”

According to TipRanks.com, Wlodarczak is a 4-star analyst with an average return of 8.7% and a 59.8% success rate. Wlodarczak covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Liberty Global PLC LiLAC Class A, and Charter Communications.

Currently, the analyst consensus on Liberty Global A is Strong Buy and the average price target is $42.50, representing a 39.3% upside.

In a report issued on October 30, Jefferies also reiterated a Buy rating on the stock with a $42 price target.

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