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Analysts Recommend ‘Buy’ for Golar LNG Partners

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Consensus recommendations

Ten analysts give recommendations for Golar LNG Partners (GMLP). The consensus rating for the stock is 2.4, which means “buy.”

Let’s look at some consensus ratings for other LNG (liquefied natural gas) companies:

  • Golar LNG (GLNG): 1.7, which means “buy”
  • Teekay LNG Partners (TGP): 2.5, which means “buy”
  • Höegh LNG Partners (HMLP): 1.6, which means “buy”
  • Dynagas LNG Partners (DLNG): 2.1, which means “buy”

Of the ten analysts covering GMLP, two have given “strong buy” recommendations and two have given “buy” recommendations. The remaining six analysts recommended “hold.” None of the analysts gave the company “sell” or “strong sell” recommendations.

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Target price

In March 2017, Jefferies raised the target price for Golar LNG Partners to $26 from $25. The consensus target price is $23.69. Based on the market price on March 29, 2017, the target price implies a potential upside of 4.8%.

Revenue and earnings estimate

Wall Street analysts expect Golar LNG Partners’ 1Q17 revenue to be $100.4 million, compared with $114 million in 4Q16 and $101 million in 1Q16. Revenue for 2017 is estimated to be $437.0 million, 1% lower than the $441 million seen in 2016. In 2018, revenue is expected to be $422.9 million.

Golar LNG Partners’ EBITDA (earnings before interest, tax, depreciation, and amortization) are expected to fall to $81 million in 1Q17, from $97 million in 4Q16. EBITDA for 2017 are estimated to be $358 million, compared with $367 million in 2016. EBITDA in 2018 are estimated to be $338.9 million. If you’re interested in broad exposure to the industrial sector, you could invest in the SPDR Dow Jones Industrial Average ETF (DIA).

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