Goldman Sachs Downgrades Golar LNG Ltd. (GLNG) to Sell
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Price: $52.47 -0.04%
Rating Summary:
17 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
17 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Goldman Sachs downgraded Golar LNG Ltd. (NASDAQ: GLNG) from Neutral to Sell with a price target of $32.50 (from $41.00). Analyst Nick Edelman cited exposure to a "softer rate environment."
"Golar will start to take delivery of an orderbook of 13 unfixed and unfinanced vessels from 2H13, which is when we expect the supply/demand balance to start to weaken. Our underlying 2013-15 EBITDA estimates are on average 12% below Bloomberg consensus, which reflects our assumption of significantly lower-than-company-average rates for Golar's newbuilds. Further, we believe that 3 of 4 FSRUs in the MLP have become uncompetitive given age, insufficient capacity, and high energy consumption. Hence, we do not expect a significant earnings contribution once their current charters expire around 2020," said Edelman.
For an analyst ratings summary and ratings history on Golar LNG Ltd. (NASDAQ: GLNG) click here. For more ratings news on Golar LNG Ltd. click here.
Shares of Golar LNG Ltd. closed at $35.88 yesterday.
"Golar will start to take delivery of an orderbook of 13 unfixed and unfinanced vessels from 2H13, which is when we expect the supply/demand balance to start to weaken. Our underlying 2013-15 EBITDA estimates are on average 12% below Bloomberg consensus, which reflects our assumption of significantly lower-than-company-average rates for Golar's newbuilds. Further, we believe that 3 of 4 FSRUs in the MLP have become uncompetitive given age, insufficient capacity, and high energy consumption. Hence, we do not expect a significant earnings contribution once their current charters expire around 2020," said Edelman.
For an analyst ratings summary and ratings history on Golar LNG Ltd. (NASDAQ: GLNG) click here. For more ratings news on Golar LNG Ltd. click here.
Shares of Golar LNG Ltd. closed at $35.88 yesterday.
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