Evercore ISI raised its price target on TORM Plc. to $38 from $37 while maintaining an Outperform rating, citing the company’s fleet strength and tight global product tanker markets.
TORM’s shares closed at $31.47 on August 25, down 0.54%, trading at a 22% discount to Evercore ISI’s year-end 2026 net asset value estimate. The analyst noted that spot rates across all three core sectors fell short of projections, while operating expenses exceeded expectations. Despite these headwinds, TORM posted its highest quarterly revenue on record at $662.8 million, surpassing Wall Street’s $506.92 million estimate by 30.8%.
Adjusted earnings per share for the second quarter of 2026 came in at $3.26, missing Evercore ISI’s $3.90 estimate and the average Street forecast of $3.31. The company declared a second-quarter dividend of $2.40 per share, translating to an 8.9% yield and a 73% payout ratio, below Evercore ISI’s projected $3.12 dividend based on an 80% payout ratio.
TORM’s fleet expansion plans include six new ships scheduled for delivery in 2027 and 2028, with an additional six newbuilds confirmed and two options for 2029 and 2030. The company’s net debt-to-capital ratio is approaching 20%, with capital commitments expected to be funded through current liquidity or proceeds from asset sales of older vessels.
Analysts attributed the strong revenue performance to geopolitical disruptions and longer ton-mile routes, particularly in the Middle East, which tightened product tanker markets globally.
