GasLog (Buy, TP: USD13.00) - LNG space continues to struggle
Winter 2019/20 has been challenging for the LNG space, with slow demand, global prices at almost half their 5-year average, and LNGC freight rates falling as we approach spring. We remain more negative than sell-side consensus, with our 2020e EBITDA of USD519m 5% below, but we believe the current valuation offers significant downside protection from asset values, with a dividend yield of 8.4%. We reiterate our BUY, but have cut our target price to USD13 (17), based on 1x our current NAV estimate.
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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