2023-05-25 14:37:20 ET
Dorian LPG ( NYSE: LPG ) +4.1% in Thursday's trading after Evercore ISI upgraded the stock to Outperform from In-line with a $32 price target, raised from $25, on valuation following strong quarterly results .
The company's Q1 adjusted EBITDA totaled $102M vs. the $88M analyst consensus estimate, and its Q1 time charter equivalent rate jumped 29% Q/Q to $68,135 from $52,768 in Q4 2022, Evercore's Sean Morgan noted.
The fundamentals of Gulf Coast exports likely will remain supportive for rest of FY 2024, according to Morgan, whose updated full-year rate forecasts provide "considerable valuation upside on a highly conservative" 4x EV/EBITDA multiple.
"Macro demand from China should strengthen and continued strong export volumes from the U.S. Gulf, which are supportive of ton miles, all look good for our FY 2024 outlook" for Dorian LPG ( LPG ), Morgan wrote.
More on Dorian LPG:
- Financial and valuation comparison to sector peers
- Analysis: Dorian LPG: Large LPG Vessel Order Book Is A Risk
- Stock price return: Up 33.5% YTD, up 46% in the past 12 months
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Dorian LPG upgraded at Evercore as rates remain robust