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On Thursday, Jefferies analyst Omar Nakta increased the price target on Capital Clean Energy Carriers Corp. (NASDAQ: CCEC) to $20.00, up from the previous $18.00, while maintaining a Hold rating on the stock. According to InvestingPro data, CCEC is currently trading at $20.50, near its 52-week high of $20.70, with analysts’ targets ranging from $18 to $26. The adjustment follows CCEC’s announcement that it has secured longer-term charters for two of its LNG carrier new buildings set for delivery in 2027, at a daily rate of approximately $90,000.
The company also declared a $0.15 per share dividend, indicating a continuation of its fixed dividend policy before transitioning to a variable payout structure. This move is anticipated as the company nears the completion of its fully-delivered fleet. With an impressive 19-year track record of consistent dividend payments and a current yield of 2.98%, CCEC maintains strong shareholder returns despite operating with significant debt. CCEC’s revenue backlog has experienced a substantial increase, rising to $3.1 billion from $2.5 billion in the previous quarter, supported by robust gross profit margins of 79.58%.
The analyst’s commentary highlighted these developments as key factors contributing to the decision to raise the price target. Nakta’s statement underscored the significance of the new charter agreements and the company’s consistent dividend payouts in the context of its growing revenue backlog.
Investors are observing CCEC’s progress as it expands its revenue backlog and secures new charter agreements, which are critical elements in the firm’s growth strategy. The stock has shown strong momentum, gaining 9.06% in the past week alone. With the updated price target, Jefferies signals its recognition of the company’s recent achievements while still advocating a cautious stance as reflected in the Hold rating. For deeper insights into CCEC’s valuation and performance metrics, including 16 additional ProTips and comprehensive financial analysis, visit InvestingPro.
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