© Reuters.
On Tuesday, Capital Product Companions (NASDAQ:) confronted a downgrade in its inventory score by Jefferies from Purchase to Maintain. Alongside the downgrade, the funding agency additionally decreased the worth goal for the delivery firm’s inventory to $18.00 from the earlier $22.00.
The adjustment comes as Capital Product Companions plans to streamline its operations by promoting off its containership fleet, thereby transitioning to an organization primarily targeted on gasoline transportation.
The agency famous that Capital Product Companions boasts a younger and trendy fleet of LNG carriers. This specialization is seen as a strategic transfer as the corporate evolves right into a devoted gasoline shipowner and operator.
The analyst from Jefferies highlighted the corporate’s important income visibility within the close to time period, which is attributed to the present contract backlog of its LNG fleet.
Regardless of the obvious strengths in its LNG operations, Capital Product Companions just isn’t with out its challenges. The corporate’s market publicity is a degree of concern as a result of scheduled supply of newbuildings in 2026. The timing and market circumstances on the level of supply might affect the corporate’s monetary efficiency and market valuation.
The repositioning of Capital Product Companions to give attention to LNG carriers is underway, with the corporate aiming to dump its containership fleet. Whereas the near-term income outlook seems steady as a consequence of contracted LNG shipments, the upcoming introduction of latest vessels in 2026 introduces a component of market threat.
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