UPDATE: ABG Sundal Collier Lowers PT on Golar LNG Limited Following Lowered Estimates
In a report published Friday, ABG Sundal Collier analyst Marius Magelie reiterated a Sell rating on Golar LNG Limited (NASDAQ: GLNG), but lowered the price target from $33.00 to $29.00.
In the report, ABG Sundal Collier noted, “With Golar LNG having 12 unfixed modern/newbuild LNGCs, shipping is still the near term focus. There are 48 newbuilds scheduled for delivery within a year and a half without a similar increase in demand. Competition will consequently heat up; at least 12-15 vessels are available for charter in 2013 alone. Further, some shipowners will require long term employment in order to secure financing; this could cause additional pressure on rates. We lower our five year rate forecast to USD 70k/d (from 77k/d) for GLNG's vessels, implying a 5% cut on EPS for 2014e. Despite the recent share price weakness, we still believe it's too early to turn positive as the equity market expectations are still too high; our '14e/'15e EPS is 2%/15% below FactSet consensus, respectively. Our revised NAV assessment is USD 27 /share, which still suggests limited valuation support. We reiterate SELL and lower our TP to USD 29 (USD 33), reflecting our lower estimates. Golar LNG will report its Q2 results in late August.”
Golar LNG Limited closed on Wednesday at $30.91.
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