UPDATE: DNB Markets Reiterates Buy Rating, Lowers PT on Golar LNG

In a report published Wednesday, DNB Markets reiterated its Buy rating on Golar LNG GLNG, but lowered its price target from $50.00 to $48.00. DNB Markets noted, “Golar LNG is hopeful of more lucrative FSRU contracts in the relatively near term, seeing final investment decisions coming up on new and credible FSRU providers, with only two established competitors in this segment. Peer Hoegh LNG states that c30 FSRU awards might come in the next five years. Golar LNG controls the only uncontracted FSRU with delivery in 2013e, and one of two with delivery in 2014e. Golar is shortlisted for three projects expected to be awarded in 2012, and expects five or more new tenders pending this year. We reiterate our BUY recommendation and have lowered our target price from USD50 to USD48, implying a 2015e EV/EBITDA of 8.0x. Our DCF-based NAV is USD53/share. We retain our positive view on Golar, but believe that slight weakness in the LNG carrier market might contribute to negative sentiment around the stock unless we see strong activity in the FSRU segment.” Golar LNG closed on Tuesday at $38.60.