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Analysts Are Bullish on Höegh LNG Partners’ 4Q17 Results

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Jan. 23 2018, Published 12:02 p.m. ET

Analysts’ recommendations

According to Reuters, the consensus rating for Höegh LNG Partners (HMLP) is 1.44, which means a “strong buy” on a scale of one (strong buy) to five (strong sell). Nine analysts gave recommendations on Höegh LNG Partners. All of the analysts are bullish on the stock. Five analysts gave a “strong buy” recommendation and four analysts gave a “buy” recommendation. None of the analysts rate the company as a “hold,” “sell,” or “strong sell.” Other LNG (liquefied natural gas) (UNG) carrier companies like Teekay LNG Partners (TGP), GasLog (GLOG), and Golar LNG (GLNG) don’t have any “sell” or “strong sell” recommendations.

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Target price

The consensus 12-month target price for Höegh LNG Partners is $21.8, which implies a potential upside of 13.4% from the market price of $19.25 on January 19, 2018.

Earnings estimates

Wall Street analysts expect Höegh LNG Partners’ 4Q17 revenue to be $35.6 million, which is close to its 3Q17 revenue of $35.8 million and higher than its 4Q16 revenue of $23.3 million. For 1Q18, analysts expect a 0.6% year-over-year rise in its revenue to $35.3 million.

Höegh LNG Partners’ revenue for 2017 is expected to be $141.6 million, which is 55% higher than $91.1 million reported in 2016. An additional rise is expected in 2018 to $150 million.

Since Höegh LNG Partners’ revenue is expected to rise, its EBITDA (earnings before interest, tax, depreciation, and amortization) is also expected to rise. Analysts have estimated its 2017 EBITDA at $109 million—a rise of 47% from $74.4 million in 2016. In 2018, the EBITDA is estimated at $125.3 million.

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