JPMorgan Sets $24 Target for COSCO ENERGY Citing High Mideast Freight Rates

Edgen Stock

·Mar 12 2026, 04:43

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Key Takeaways

JPMorgan reaffirmed its positive outlook on the oil tanker industry, citing geopolitical tensions as a driver for sustained high freight rates. The bank's analysis points to a tightening supply of vessels and increased demand for long-haul routes, directly benefiting companies like COSCO SHIPPING ENERGY.

JPMorgan reaffirmed its 'Overweight' rating on COSCO SHIPPING ENERGY (01138.HK) with a new target price of $24.
Mideast geopolitical tensions are expected to keep tanker freight rates structurally high for the next 12 months.
Tighter fleet supply and rising demand for alternative routes are forecast to sustain the company's six-digit freight earnings.

JPMorgan Sets $24 Target on Sustained Profit Momentum

JPMorgan has reaffirmed its "Overweight" rating on COSCO SHIPPING ENERGY (01138.HK), establishing a price target of $24. The bank's analysis, presented during an expert conference call with over 90 investors, projects that the company is positioned to maintain "six-digit freight earnings." This forecast for sustained profit momentum underpins the bank's positive view, reinforcing its bullish stance on the energy transport sector.

Mideast Tensions Lock in High Rates for 12 Months

The optimistic forecast hinges on Iran-related events that are fundamentally reshaping oil and gas transportation markets. According to the report, safety concerns are causing vessels to avoid loading in the Persian Gulf, which creates a significant tightening of the effective tanker fleet supply. Forward charter markets indicate that tanker earnings will likely remain structurally high for the next 12 months, even if spot freight rates ease.

This supply bottleneck is also driving up demand for alternative, long-haul crude oil transport from regions like the US Gulf of Mexico. JPMorgan's experts noted that even if an immediate ceasefire occurs, a return to normal shipping through the Strait of Hormuz will take time. The process of rebuilding confidence among shipowners, insurers, and charterers is expected to be gradual, cementing the high-rate environment for the foreseeable future.