CPLP - Capital Product Partners: Improving Conditions But Keep Expectations Modest

• There has been another quarter pass since Capital Product Partners reduced their distributions by a massive 71%.
• The recovery in operating conditions has even surprised their management, who have also flagged the possibility of future distribution growth.
• Even though this seems encouraging, investors should keep their expectations modest as uncertainties are still rife.
• These include their structurally lumpy capital expenditure and resulting free cash flow, plus if operating conditions can improve so quickly, then the opposite can happen once again.
• Given this situation, I continue believing that a neutral rating is appropriate.

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