Clarksons Platou Positive On GasLog, Says Investors Should Consider High-Quality, Cash-Flow Generating Companies

Clarksons Platou Securities recently issued a company note on GasLog Ltd GLOG after a decrease in share price has presented an attractive valuation to analysts relative to peers. Clarksons Platou rates GasLog as a Buy while a price target is unavailable.

Analysts Omar Nokta and John Gandolfo wrote, "Gaslog's quality fleet is backed by secured revenue streams...With the financing of its nearly fully chartered newbuilding portfolio firmly in place, the company is positioned to double CFPS in 2016...The company remains, in our opinion, attractively valued trading at roughly 58 percent of our $12.80/share NAV assessment."

Analysts noted one positive for GasLog's business operations is that the company has little counterparty risk attached to charters which allows it to have lower volatility relative to its peers. Furthermore, Clarksons Platou believes that GasLog may benefit from strong corporate relationships that it can use to drive top line revenue growth, accelerate margin expansion, and grow free cash flow.

Overall, Nokta and Gandolfo sees potential for GasLog to increase market share in 2016 while being traded at an attractive valuation, too low a discount relative to the few assets exposed to spot market volatility.

Shares of GasLog recently traded at $6.47, down 6.3 percent