UPDATE: Citigroup Reiterates Hold Rating, Raises PT on Teekay LNG Partners
In a report published Monday, Citigroup reiterated its Hold rating on Teekay LNG Partners LP (NYSE: TGP), and raised its price target from $38.50 to $40.00.
Citigroup noted, “We continue to view TGP's long-term contracts and stable cash flows positively, but future growth and returns on investment are somewhat less visible considering the competitive third-party acquisition market. LNG markets remain in backwardation with near-term rates being supported by demand from Japan, but longer-term charter rates are being held down by the wall of new build capacity that starts coming to the market next year. We remain positive in our outlook and believe the transport market will remain tight despite new builds coming into the market as short-term rates remain supportive of new build economics; we expect longer-term contract rates to follow as LNG supply/demand continues to grow and absorbs the new build capacity.”
Teekay LNG Partners LP closed on Friday at $40.45.
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