BofA/Merrill analyst Ken Hoexter issued a double-upgrade on Teekay Tankers to Buy from Underperform with a price target of $3, up from $2. Despite the 83% run-up in the stock price since October, the analyst contends that shares can "re-rate higher" with crude tanker markets current being in the "early stages of a robust recovery" and given the company's "attractive operating leverage" to rate inflections. Hoexter adds that Teekay's mid-sized vessels will also benefit from an improving crude tanker market, with the current tanker demand expected at 6% FY20 that should "materially outpace muted fleet supply growth of 1-2%."