UPDATE: Iberia Capital Partners Upgrades Knightsbridge Tankers Limited on Positive Outlook

In a report published Tuesday, Iberia Capital Partners analyst David E. Beard upgraded the rating on Knightsbridge Tankers Limited (NASDAQ: VLCCF) from Sector Perform to Outperform, and named a $10.00 price target.

In the report, Iberia Capital Partners noted, “We believe the bulk carrier market is still 20-30% oversupplied and has a ~10% of fleet order book. Strong scrappings (~5-6% of fleet) and robust demand growth (+5-8%) set the stage for better supply/demand metrics exiting 2014, which in turn leads to higher rates. We believe the stocks could move 6-9 months ahead of a turn in fundamentals and, thus, believe investors can accumulate shares of bulk carriers, including VLCCF.”

Knightsbridge Tankers Limited closed on Monday at $7.83.