UPDATE: Jefferies Downgrades Nordic American Tanker on Misplaced Optimism, Valuation

In a report published Tuesday, Jefferies analyst Douglas J. Mavrinac downgraded Nordic American Tanker (NYSE: NAT) from Hold to Underperform, and lowered the price target from $7.00 to $5.00.

In the report, Jefferies noted, “With NAT shares having increased ~40% over the past 7 weeks due to the surge in WAF-US Suezmax charter rates, we are downgrading NAT shares to Underperform from Hold as NAT shares now trade at ~200% of estimated NAV, a premium we believe is unsustainable once the surge in WAF-US Suezmax spot charter rates inevitably subsides.”

Nordic American Tanker closed on Monday at $9.72.