UPDATE: Morgan Stanley Reiterates Overweight Rating, Lowers PT on Golar LNG Limited

In a report published Friday, Morgan Stanley reiterated its Overweight rating on Golar LNG Limited GLNG, but lowered its price target from $64.00 to $58.00. Morgan Stanley noted, “During 2Q, spot and short-term charter rates moved upwards reaching an all-time high of $150k. Spot rates have recently declined to still highly attractive $140k as Europe to Asia spread has shrunk and ~6.5mt of capacity from Trinidad is down for maintenance. As each 1 mt requires ~3 ships to Asia or nearly one ship to Europe, the return of this capacity, is expected to further stretch the near-term balance. Furthermore, Asia's seasonal restocking is expected to boost re-exports, while Angola's 5.2 mtpa is scheduled to launch next month.” Golar LNG Limited closed on Thursday at $38.77.