Canopy Growth stock tumbles after announcing $200 million share sale plan
On Monday, Stifel analysts maintained their Buy rating and $55.00 price target for Golar LNG Ltd . (NASDAQ:GLNG), in light of recent developments regarding LNG projects in Argentina. Currently trading at $35.23 with a market capitalization of $3.68 billion, GLNG has garnered strong analyst support with a consensus "Buy" rating and price targets ranging from $42 to $56. During YPF's investor day, the company unveiled plans for LNG expansion from the Vaca Muerta region, which are expected to involve Golar's specialized vessels.
YPF outlined its intention to initiate three projects featuring six floating LNG (FLNG (OL:FLNG)) units. The first project is slated for a final investment decision (FID) in 2025, with operations commencing between 2027 and 2028, and aims to produce approximately 6 million tonnes per annum (mtpa) of LNG. According to Stifel's analysis, Golar's Hilli and MK2 Fuji vessels, with capacities of 2.5 mtpa and 3.5 mtpa respectively, are the only two ships globally that match the required specifications and availability for this timeline.
The potential involvement of Golar in these projects, particularly with their MK3 design for newbuild projects, is anticipated. Stifel's assessment is that the deployment of Hilli and Fuji alone could generate a combined EBITDA of $1.5 billion for Golar LNG, which supports a share price valuation in the range of $50 to $60, even after accounting for the development timeline.
Stifel's outlook on Golar LNG remains positive, with the firm's analysis suggesting a robust financial performance for the company as it potentially engages in YPF's ambitious LNG initiatives. Golar's specialized FLNG units are seen as a critical component of the first project's success, aligning with the company's strategic assets and expertise in the LNG sector. According to InvestingPro, analysts expect both net income and sales growth this year, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of GLNG and 1,400+ other top stocks.
In other recent news, Golar LNG Limited reported its fourth-quarter 2024 earnings, revealing total operating revenues of $66 million, which fell short of the forecasted $67.42 million. Despite the revenue miss, the company maintained a steady financial performance, with total EBITDA reaching $59 million for the quarter and $241 million for the full year 2024. Golar LNG declared a quarterly dividend of $0.25 per share. The company continues to lead in the FLNG sector with strategic expansions, including a 20-year charter with Southern Energy in Argentina. Stifel analysts maintained a Buy rating on Golar LNG, highlighting the completion of a significant refinancing deal for the Gimi FLNG unit, which is engaged in a 20-year contract for the Greater Tortue Ahmeyim project. This refinancing arrangement amounts to $1.2 billion and is expected to support Golar's growth, particularly in funding the equity component for a second MK2 vessel. Stifel believes the current valuation of Golar LNG shares does not reflect the potential upside from the MK2 projects. Additionally, Stifel analysts noted changes in the LNG market, citing new projects and geopolitical tensions as factors influencing market dynamics.
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