Analysts Offer Insights on Services Companies: Nordic American Tanker (NYSE: NAT), Reading International Inc (NASDAQ: RDI) and TEGNA Inc (NYSE: TGNA)

By Ryan Adsit

There’s a lot to be optimistic about in the Services sector as 3 analysts just weighed in on Nordic American Tanker (NATResearch Report), Reading International Inc (RDIResearch Report) and TEGNA Inc (TGNAResearch Report) with bullish sentiments.

Nordic American Tanker (NAT)

B.Riley FBR analyst Liam Burke maintained a Buy rating on Nordic American Tanker yesterday and set a price target of $4.75. The company’s shares closed yesterday at $2.40.

Burke noted:

“Nordic American (NAT) reported 1Q19 results with TCE revenue of $26,025 per day per ship, which was a significant increase from $11,200 during 1Q18. TCE revenue per day increased 29.5% sequentially. Net voyage revenue increased 81.8% Y/Y . The company reported adjusted EBITDA of $34.3 million compared to $4.4 million a year ago. EPS of $0.04 for 1Q19 compares to a loss per share of $0.13 a year ago. With its concentration in Suezmax class vessels operating primarily in the spot market, Nordic American has, in our opinion, the asset base in place to capitalize on an improving supply/demand dynamic that is seeing steadily rising worldwide demand for crude oil and refined products. Based on attractive assets operating in a healthy macro environment, we continue to rate NAT shares a Buy and we are raising our price target from $4.25 to $4.75.”

According to TipRanks.com, Burke is ranked #2808 out of 5183 analysts.

The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Nordic American Tanker with a $1.25 average price target.

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Reading International Inc (RDI)

In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on Reading International Inc, with a price target of $21.50. The company’s shares closed yesterday at $14.55.

Wold wrote:

“Friday morning, 5/10, Reading International (RDI) reported 1Q19 results and then posted a pre-recorded conference call to its website on Wednesday, 5/15. The company reported 1Q19 results that came in below expectations primarily due to box office headwinds within the cinema segment. With our expectation for improving global box office trends throughout the remainder of 2019, the potential for positive leasing news around the Union Square development in the coming weeks and management now turning its attention to the potentially significant Cinemas 1,2,3 development, we continue to believe RDI shares trade well below fair value—and would expect a Union Square lease announcement to begin to unlock that value for shareholders. We are reiterating our Buy rating with a lowered PT of $21.50 (down from $23.50).”

According to TipRanks.com, Wold is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -4.4% and a 37.9% success rate. Wold covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, National Cinemedia, and AMC Entertainment.

Currently, the analyst consensus on Reading International Inc is a Moderate Buy with an average price target of $23.50.

TEGNA Inc (TGNA)

In a report released today, James Goss from Barrington maintained a Buy rating on TEGNA Inc, with a price target of $18. The company’s shares closed yesterday at $15.83, close to its 52-week high of $16.57.

Goss noted:

“We are now using a 2019-based price target of $18 (from $17) for TGNA, assigning an 8.5x two-year-forward EV/EBITDA multiple reflecting the industry-leading positions in its broadcasting and related digital businesses. TEGNA is committed to returning capital to shareholders via a $0.28 annual dividend (yielding 1.8%) and share repurchases. TEGNA is focused on using its industry-leading position in broadcasting to establish and grow related programming and digital initiatives.”

According to TipRanks.com, Goss is a 5-star analyst with an average return of 12.1% and a 59.0% success rate. Goss covers the Services sector, focusing on stocks such as Nexstar Media Group Inc, iPic Entertainment Inc, and Sirius XM Holdings Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for TEGNA Inc with a $18 average price target, representing a 13.7% upside. In a report issued on May 10, Benchmark Co. also maintained a Buy rating on the stock with a $18 price target.

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