Evercore ISI raised its price target on TORM Plc to $38 from $37, citing the company’s fleet expansion and strong second-quarter 2026 financial performance. The stock remains 22% below the firm’s net asset value estimate for year-end 2026.
TORM reported adjusted earnings per share of $3.26 for Q2 2026, below Evercore ISI’s $3.90 estimate but above the Wall Street consensus of $3.31. Revenue totaled $662.8 million, exceeding the $506.92 million forecast by 30.8%.
The company declared a quarterly dividend of $2.40, representing a 73% payout ratio. Evercore ISI had projected a $3.12 dividend based on an 80% payout, implying an 8.9% dividend yield.
TORM’s fleet expansion includes six new vessels scheduled for delivery in 2027 and 2028, with an additional six vessels on order and two delivery options for 2029 and 2030. The company’s net debt-to-capital ratio is approaching 20%, with capital commitments to be funded through existing liquidity or proceeds from the sale of older ships.
Product tanker markets remain tight due to geopolitical disruptions in the Middle East and longer ton-mile trade routes, supporting elevated freight rates.
