Tag Archives: Dorian LPG

LPG-US: Initiation (Neutral, TP 6.9)

Dorian LPG has a fleet of 22 modern Very Large Gas Carriers (VLGC) with four on long time charters and the rest by large exposed to the current lackluster spot market. Recent corporate actions highlights the continued necessity of shoring up the balance sheet and ensuring liquidity as we await the cyclical upturn, which we pencil in from 2018E. Although we are positive on the sector outlook, we initiate coverage with a Neutral recommendation and a target price of USD 6.9 (-9%) due to the relatively high cash and P&L break-even levels. Dorian LPG is in our view priced ahead of peers Avance Gas (BUY, TP 28) and BW LPG (BUY, TP 37) in terms of both NAV and earning multiples.

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