Deutsche Bank Starts Capital Product (CPLP) at Buy

Deutsche Bank initiated coverage on Capital Product (NASDAQ: CPLP) with a Buy rating and a price target of $15.

Analyst Amit Mehrotra said, "We estimate CPLP’s distribution cash flow will increase to $150M in 2016 vs. an estimated $105M this year (+19% CAGR). The increase reflects the acquisition of 5 new vessels expected to come online under mid/long-term time charters in 2H15. This move would bring CPLP’s total vessel count to 35 (from 30 today), partly fulfilling management’s recent comments that CPLP “has the opportunity to enter into a new growth phase”. The higher surplus cash should translate to increased distributions, which at the current yield translates to a $15 stock price."

For an analyst ratings summary and ratings history on Capital Product click here. For more ratings news on Capital Product click here.

Shares of Capital Product closed at $9.94 yesterday.

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