Frontline up on Goldman Sachs upgrade

NEW YORK (AP) -- Shares of oil tanker operator Frontline Ltd. rose Friday after Goldman Sachs upgraded the stock from "Sell" to "Buy," predicting stabilization of freight rates.

Oil tanker companies have been struggling because the recession has led to sharply reduced oil production and shipments. Bermuda-based Frontline operates one of the world's largest fleets of crude oil tankers.

Goldman Sachs analyst Hugo Scott-Gall wrote that the financing strain for tanker companies has eased now that the group has canceled 35 percent of its unfinanced orders for tankers.

His report said the shares of Frontline were trading below its Asian peers by a key measure of earnings.

Frontline shares rose $1.33, or 5.3 percent, to $26.53 in afternoon trading

(Source: Yahoo)