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No ‘Sell’ Rating for Teekay LNG Partners

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Target price

On June 9, 2017, Morgan Stanley reduced the target price for Teekay LNG Partners (TGP) to $15 from $18. Currently, the consensus target price is $19.20. Based on the price of $14.45 on June 27, 2017, the target price implies a potential upside of 33.5%.

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Recommendations for Teekay LNG Partners

Nine analysts have given recommendations for Teekay LNG Partners. At the start of the year, 11 analysts were covering the company. Of the nine analysts, two analysts have recommended a “strong buy,” and two have recommended a “buy.” The remaining five analysts have given the stock a “hold.” None of the analysts have recommended a “sell” or “strong sell.” Golar LNG (GLNG), Höegh LNG Partners (HMLP), GasLog (GLOG), and GasLog Partners (GLOP) also don’t have any “sell” ratings.

Teekay’s revenue sources

Teekay LNG Partners (TGP) derives its revenue from two segments—the Liquefied Gas segment and the Conventional Tanker segment. It derives 74.0% of its total revenue from the Liquefied Gas segment and the remaining 26.0% from the Conventional Tanker segment.

Revenue and earnings estimates

Analysts estimate that Teekay LNG Partners’ 2Q17 revenue will be $105.6 million, which is 4.3% higher than $101.0 million in 1Q17. Revenue for 2017 is estimated at $441.0 million, which is 11.4% higher than $396.4 million in 2016.

In 2018, TGP’s revenue is expected to rise to $544.3 million. Analysts’ 2Q17 EBITDA (earnings before interest, tax, depreciation, and amortization) estimate is $74.2 million, which is a rise of 2.7% from the $72.2 million reported in 1Q17. For fiscal 2017, the EBITDA estimate stands at $319.5 million, which is 11.0% higher than 2016 EBITDA of $287.0 million.

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