Jefferies Maintains 'Buy' Rating on Frontline, Price Target at $25

Jefferies maintains 'Buy' rating on Frontline (FRO) with a price target of $25.00. The analyst's decision reflects confidence in Frontline's operational performance and market position. The price target is expressed in USD and was last confirmed on August 29, 2025. Based on the one-year price targets offered by 3 analysts, the average target price for Frontline PLC is $23.67 with a high estimate of $25.00 and a low estimate of $21.00. The average target implies an upside of 14.22% from the current price of $20.72.

Jefferies has maintained its 'Buy' rating on Frontline (FRO) with a new price target of $25.00, reflecting confidence in the company's operational performance and market position. This decision was announced on August 29, 2025 [1]. The analyst's optimism is echoed by the one-year price targets from three analysts, averaging $23.67 with a high estimate of $25.00 and a low estimate of $21.00. This average target implies an upside of 14.22% from the current price of $20.72.

Frontline reported its second-quarter and six-month earnings for 2025, revealing a challenging quarter marked by a 40.9% decline in revenue to $328.71 million and an 11.3% drop in earnings per share (EPS) to $0.55 [2]. However, the company maintained its dividend policy, declaring a $0.18 per share payout with a forward yield of 397.0% [5]. Frontline's strategic initiatives, including product innovation and eco-friendly fleet modernization, are aimed at driving future growth and reducing costs. The recent launch of FRONTLINE Shield, a product combining flea, tick, and mosquito protection for dogs, underscores the company's commitment to diversifying its pet care portfolio [3].

Despite the earnings contraction, Frontline has maintained strong gross margins and a proactive approach to market dynamics, suggesting that the current revenue dip is a temporary setback rather than a structural decline. The company's investment in a young, eco-friendly fleet and its ability to leverage favorable tanker market conditions amid macroeconomic volatility provide a financial cushion to weather external uncertainties [4]. Frontline's refinancing efforts in 2025, extending debt maturities to 2030 and reducing borrowing costs, further bolster its financial position.

Investors will be monitoring Frontline's ability to execute its expansion plans and manage its dividend commitments against evolving market conditions. The company's strategic pillars—product innovation, fleet modernization, and disciplined capital allocation—position it to outperform in the medium to long term.

References:
[1] https://www.marketscreener.com/news/frontline-plc-reports-earnings-results-for-the-second-quarter-and-six-months-ended-june-30-2025-ce7c50dddd8ff722
[2] https://www.ainvest.com/news/frontline-q2-2025-presentation-webcast-schedule-2508/
[3] https://www.ainvest.com/news/frontline-fro-2025q2-earnings-preview-upside-product-expansion-2508/
[4] https://www.ainvest.com/news/frontline-plc-release-q2-2025-results-host-conference-call-webcast-august-29-2025-2508/
[5] https://dividendstocks.cash/dividend-profile/Frontline-Dividend