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Recommendations Still Unchanged for Höegh LNG Partners

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Target price

According to Reuters, the consensus 12-month target price for Höegh LNG Partners (HMLP) is $27.19. Based on the market price on June 27, 2017, the target price implies a potential upside of 16.5%.

Nine analysts are currently giving recommendations for Höegh LNG. Of those, nine have recommended a “strong buy,” and three have recommended a “buy.” Only one analyst has given it a “hold” rating, and none of them have given it a “sell” or “strong sell.” These ratings haven’t changed since the start of the year. Other LNG (liquefied natural gas) (UNG) carrier companies such as Teekay LNG Partners (TGP), GasLog (GLOP), and Golar LNG (GLNG) also don’t have any “sell” or “strong sell” recommendations.

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Earnings estimates

Wall Street analysts expect Höegh LNG Partners’ 2Q17 revenue to be $34.0 million, which is lower than its 1Q17 revenue of $35.1 million and higher than its 2Q16 revenue of $22.7 million. For 3Q17, analysts expect a 54.0% year-over-year rise in revenue to $36.1 million.

Höegh LNG Partners’ (HMLP) revenue for 2017 is expected to be $142.4 million, which is 56.4% higher than the $91.1 million reported in 2016. A further rise is expected in 2018 to $173.8 million.

Since HMLP’s revenue is expected to rise, so is its EBITDA (earnings before interest, tax, depreciation, and amortization). Analysts have estimated 2017 EBITDA at $113.2 million, a rise of 52.0% from $74.4 million in 2016. In 2018, EBITDA is estimated at $145.0 million.

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