Dorian LPG (Buy, TP: USD25.50) - We maintain our bullish view
We remain bullish on Dorian LPG’s near-term prospects, supported by VLGC spot rates continuing to climb despite the start of the low season, with the FFA curve indicating cUSD63k/day for February – well above the 2011–2022 average of USD29k/day. Hence, our 2023e adj. EBITDA is 29% above consensus, and we expect the company’s cash generation to support a c30% return of the current market cap in 2024–2025. We reiterate our BUY and have raised our target price to USD25.5 (21.2).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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