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Investing.com - Jefferies initiated coverage on Okeanis Eco Tankers Corp (NYSE:ECO) with a Buy rating and a $29.00 price target on Wednesday. The company, currently valued at $735 million, trades at an attractive P/E ratio of 9.1x and appears undervalued according to InvestingPro Fair Value metrics.
The research firm highlighted Okeanis’s modern fleet of VLCCs (Very Large Crude Carriers) and Suezmaxes, noting the company has consistently outperformed spot indexes and peer averages.
Jefferies attributed this outperformance to Okeanis’s high-quality fleet and strong commercial platform, positioning it as a top play on expected VLCC strength in the coming months.
The firm emphasized that Okeanis maintains the highest operating margins among stocks in its tanker coverage universe.
Jefferies also noted Okeanis’s shareholder-friendly capital allocation strategy, as the company distributes the majority of its free cash flow as dividends.
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