Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - Evercore ISI raised its price target on TORM Plc. (NASDAQ:TRMD) to $23.00 from $22.00 on Thursday, while maintaining an Outperform rating on the stock. Currently trading at $20.50, InvestingPro analysis suggests TORM is slightly undervalued, with the stock showing a strong financial health score of 3.39 out of 5.
The shipping company reported second-quarter 2025 adjusted diluted earnings per share of $0.53, excluding a gain on asset sale, which fell slightly below Evercore’s forecast of $0.58.
TORM’s third-quarter-to-date spot rates across its three asset classes are tracking well above expectations, prompting Evercore to revise its third-quarter 2025 estimates upward to $0.81 from $0.36 previously.
The company continues to modernize its fleet, selling one older LR2 vessel in the second quarter and agreeing to sell two 17-year-old MRs in the third quarter. TORM also arranged a new credit facility for up to $857 million to repay maturing loans and finance the repayment of lease arrangements covering 22 ships.
Evercore noted that the new financing lowers TORM’s cost of debt and cash breakeven levels while enhancing financial flexibility with up to $400 million of additional liquidity. The firm expects TORM’s dividend payout ratio to return closer to 75-80% once refinancings are completed, compared to approximately 67% year-to-date.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.