Analyst Magnus Fyhr initiated coverage of the crude tanker owner today with a buy rating and a $20 per share target price.
This compares with the $14 per share figure at its listing and the last close of $13.77 per share.
Gener8, formed from the merger of Navig8 Crude and General Maritime, went to Wall Street with 23 tankers, including seven VLCCs, on the water.
It has 21 newbuildings on order for delivery up until the first quarter of 2017.
Fyhr believes Gener8 is heading for a profit of $76.3m this year, rising to $167m in 2016.
“We expect fundamentals to tighten further as we move into the seasonally stronger winter market,” the analyst said.
“While investor concerns center on increasing fleet growth, we believe fleet growth remains manageable.
“We will continue to monitor ordering activity closely as it could have a negative impact on the market in 2017/18.”
Fyhr says the company has $250m in cash after its listing and with strong cash flow expected it should have ample liquidity to pursue further acquisition opportunities.
