Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Frontline
So what: Along with the upgrade, Dahlman planted a price target of $9.50 on the stock, representing about 35% worth of upside to yesterday's close. Frontline shares have been crushed over the past year on paltry shipping rates, but the Wall Street analyst cited an effective restructuring -- which helped it retain big spot market exposure -- and a strengthening balance sheet as catalysts for a turnaround.
Now what: Don't let this pop keep you from looking into the stock. Even with today's double-digit rally, Frontline shares are down more than 65% over the past year and continue to trade at a wide price-to-sales discount to the entire shipping space. As long as the balance sheet keeps firming up, the biggest drag on the stock should continue to steadily fade.
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