Jefferies Initiates Coverage#
Jefferies has started coverage on International Seaways Inc. (NYSE: INSW) with a buy rating and a price target of $90. Currently, the stock trades at $76.81, close to its 52-week high of $79.07, following a remarkable 150% increase over the past year.
Fleet Composition#
The firm emphasized International Seaways' position as a tanker operator with a diverse fleet that includes both crude and product ships. The fleet is divided into 40% crude and 60% product based on vessel value, and 70% crude to 30% product based on deadweight tonnage, which measures the total weight a ship can carry.
Financial Strength#
Jefferies noted that International Seaways provides exposure to both crude oil and refined products markets, unlike many competitors that focus on just one segment. The company's efforts to reduce debt in 2022 and 2023 have resulted in lower cash breakeven costs of about $13,000 per day across its fleet. This debt reduction has significantly improved free cash flow, liquidity, and options for returning value to shareholders. The company currently has a strong current ratio of 3.71, indicating that its liquid assets comfortably exceed short-term liabilities.
Recent Financial Results#
In recent news, International Seaways reported strong financial results for the fourth quarter of 2025, surpassing Wall Street expectations. The company achieved earnings per share of $2.45, exceeding the forecast of $1.94, and reported revenue of $267.88 million, compared to the anticipated $235.36 million. Additionally, the company declared a record dividend of $2.15 for the quarter, reflecting a 12% annualized yield and a 73% payout of quarterly operating cash flow. Following these results, BTIG raised its price target for International Seaways to $80 from $70, while maintaining a Buy rating, citing the earnings beat and favorable tanker rate environment as key factors.