Torm turns lower as Pareto downgrades after stock gains from strong Q2 results

[Oil Tanker]
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Torm (NASDAQ:TRMD [https://seekingalpha.com/symbol/TRMD]) -1.5% in Tuesday's trading as Pareto Securities downgraded the oil products tanker owner to Hold from Buy with a $21 price target, after shares surged ~15% last week following Q2 results [https://seekingalpha.com/news/4485137-torm-gaap-eps-of-060-raises-fy-outlook] and strong bookings in Q3.

Torm (NASDAQ:TRMD [https://seekingalpha.com/symbol/TRMD]) "delivered well in Q2 and raised guidance," and Q3 bookings are "solid amid all-time high clean petroleum products loadings, decline in the trading fleet year on year and strong refinery margins," Pareto analyst Eirik Haavaldsen wrote, adding that a 73% dividend payout ratio was the only drawback.

Haavaldsen raised his estimate for Torm's (NASDAQ:TRMD [https://seekingalpha.com/symbol/TRMD]) FY 2025 EBITDA to $505M from $480M previously, but for FY 2026, the analyst expects more downside to estimates, being 35% below
consensus on earnings per share.

"Geopolitical events continue to dictate sentiment for tankers, with product tankers likely the segment that has benefited the most from the rerouting of Russian volumes," the analyst wrote.

MORE ON TORM

* Torm: A Sunny Horizon Despite The Waves [https://seekingalpha.com/article/4799596-torm-a-sunny-horizon-despite-the-waves]
* Torm: Iran Tensions Picked Up Interest, Now Rates Should Follow [https://seekingalpha.com/article/4795057-torm-iran-tensions-picked-up-interest-now-rates-should-follow]
* Seeking Alpha's Quant Rating on Torm [https://seekingalpha.com/symbol/TRMD/ratings/quant-ratings]