Frontline Ltd (NYSE:FRO) no doubt faces some short-term challenges, the expanding role of oil transportation using the sea should help Frontline over the longer term.
FBR said, "Frontline reported a softer quarter due to weak rate realizations, as we expected. Concerns over 4Q10 earnings as well as the dividend level also drove the stock lower. While the near term is proving to be challenging, we continue to believe that Frontline is positioned to benefit from an increasing seaborne oil trade, as an increasing percentage of the world's oil is transported via the sea and as trade lanes lengthen. We believe the current softness in the tanker market presents an entry opportunity for FRO ahead of typically strong winter rates."
Frontline was trading at $26.03, dropping slightly by $0.02, or 0.008 percent. FBR lowered their price target on them from $44 to $40.
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