Wells Fargo Starts GasLog Partners LP (GLOP) at Outperform
Wells Fargo initiated coverage on GasLog Partners LP (NYSE: GLOP) with an Outperform rating and a price target of $31-$33.
Analyst Michael Webber said, "We believe GLOP’s potential for significant distribution growth (~12-15% annually - which we think is actually conservative) drawing from a robust dropdown pipeline (+$3B), decent contract coverage (~4 years moving towards ~6 years), an experienced, top-tier management team in our view, and exposure to firm LT LNG fundamentals all combine to create a very compelling risk/reward profile, positioning GLOP among our top picks within the Marine MLP space. While GLOP has performed well out of the gate (up 26% vs. S&P 500’s 2.4%), we believe GLOP’s growth and position as a group leader should drive additional upside (~21%). Our valuation range of $31-33/unit is based on our three-stage dividend discount model and a targeted forward yield of ~5.5%."
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Shares of GasLog Partners LP closed at $26.52 yesterday.