Teekay Corp. shares higher on upgrade

Analyst Gregory Lewis raised Teekay to "Outperform" from "Neutral." He said the stock dropped about 25 percent in the last month and was trading at a three-year low.

"While we remain cautious on the outlook for tanker rates in 2009, we believe the recent weakness presents a compelling entry point for investors," Lewis said.

The analyst thinks the sell-off of Teekay shares was overblown, prompted by declining tanker rates, the company's plan to restate financials from 2003 to 2008, and concerns about the strategy of spinning off three core business segments.

On Aug. 7 Teekay said it will restate financial results from 2003 through the end of the second quarter of 2008. The company said the restatements will correct accounting for certain interest rate swaps, foreign exchange forward contracts, and freight forward agreements used in its hedging strategies.

Teekay shares rose $1.23, or 3.7 percent, to $34.83 in morning trading.