Alert: Rating Downgrade (1/5/24)-Teekay Corp (NYSE: TK).

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Stock Rating Downgrade

Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Teekay Corp (NYSE: TK) weakened of late. TK’s current Value Trend Rating is C and the prior Rating was B. Details supporting this lower rating are included in our next report.

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Recent Price Action

Teekay Corp (NYSE: TK) stock closed at $7.92 on 1/5/24 after a large increase of 4.1%. Moreover, unusually high trading volume at 181% of normal accompanied the advance. The stock has risen 7.3% during the last week and has been exceptionally strong relative to the market over the last nine months.

Current PriceTarget Research Rating

TK is expected to continue to be a modest Value Builder reflecting capital returns that are forecasted to exceed the cost of capital.

Teekay has a current Value Trend Rating of C (High Neutral). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. Teekay has a slightly negative Appreciation Score of 34 but a very high Power Rating of 88, with the High Neutral Value Trend Rating the result.

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