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Dynagas LNG Partners: Highest Upside Potential among Peers

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3Q17 results

On December 5, 2017, Dynagas LNG Partners (DLNG) reported its third-quarter results. Dynagas LNG Partners reported an operating income of $15.9 million and EPS (earnings per share) of $0.06 in 3Q17. The third quarter results included $1.1 million of a scheduled class survey and drydocking costs. The adjusted net income for 3Q17 was $7 million, while the adjusted EPS was $0.15.

Dynagas LNG Partners declared a quarterly cash distribution of $0.4225 per common unit and $0.5625 per preferred unit. The company has a contracted revenue backlog of $1.46 billion with a contract duration of ten years.

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Consensus recommendations

Seven analysts gave recommendations on Dynagas LNG Partners. Of the analysts, 57% are bullish on the stock—two analysts gave a “strong buy” recommendation, while two analysts gave a “buy” recommendation. The remaining three analysts gave a “hold” rating to Dynagas LNG Partners. None of the analysts gave the company a “strong sell” or “sell” rating.

Target price

The consensus 12-month target price for Dyanagas LNG Partners is $16.43. Compared to the current market price of $11.79 as of December 8, 2017, the target price implies a potential upside of 39.1%.

Peers

The following are the potential upside returns of LNG (UNG) carrier companies compared to the market price as of December 8:

  • Golar LNG (GLNG) – 31%
  • Hoegh LNG Partners (HMLP) – 25%
  • Teekay LNG Partners (TGP) – 11%
  • GasLog (GLOG) – 6%
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