UPDATE: ABG Sundal Collier Downgrades Golar LNG to Hold on Fading Momentum
ABG Sundal Collier reduced its rating on Golar LNG (NASDAQ: GLNG) from Buy to Hold and reduced its price target from $45 to $42.
ABG Sundal Collier noted, "Golar LNG reported a good Q2; EBIT of USD 58m was 11% ahead of our forecasts and 3% ahead of consensus. The quarterly dividend run-rate was also increased by USD 0.05 to USD 0.4 per share, corresponding to an annualised yield of 4%. On the negative side, we see momentum fading with no uptick in long-term shipping rates, no immediate drop-down candidates and no short-term upside on dividends. We also lower our EBIT forecasts for 2013 and 2014 by 3% and 10%, respectively, and reduce our quarterly DPS forecast to a current run-rate of USD 0.4."
Golar LNG closed at $37.77 on Thursday.
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