Dorian LPG (Buy, TP: USD43.50) - Cash flow set to flow
The announcement of a reduction in Panama Canal transits to 18 slots (from a recent average of 32) from February 2024 has reinforced an already strong VLGC market, and, together with the FFA surging to a USD90k/day for VLGC freight rates in 2024, mean we expect Dorian spot rates to average USD71k/day in 2024. We estimate ~USD13/share cash flow over the next 12 months, implying potential for solid dividends and a potential 35% yield. We reiterate our BUY and have raised our target price to USD43.5 (40).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.