Dorian LPG (Hold, TP: USD28.30) - Stretched valuation in hot market
Dorian LPG is still catering to investor demand, with its consistent irregular dividend supporting the current valuation. The VLGC market remains hot, and current FFAs for its fiscal year 2024 indicate the potential for USD5/share on top of our estimates. However, US rig count continues to fall (down 15% YTD), while propane stocks have been supported by unusually low domestic demand YTD, with more than half the 2024 orderbook due to hit the water in H2. We reiterate our HOLD, but have raised our target price to USD28.3 (26.9).
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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