Equity analyst Michael Webber says the John Fredriksen-backed company appears poised to climb the supply chain with a move that could enhance returns to shareholders.
He told clients: “Golar has historically been the equity proxy for the LNG carrier spot market, and while we believe those assets will remain its core business, we believe its recent expansion into FSRUs and potentially FLNG could reposition the stock, creating a more stable value footprint while generating stable returns significantly above those typically seen in the traditional carrier market.”
Citing channel checks and recent meetings with management in London, Webber said Golar may storm the FLNG space by getting in on the Douglas Channel LNG export project at some point in the next two to three months in addition to potential contracts in West Africa even sooner.
Yesterday, the analyst upgraded Golar to “outperform” from “market perform” and set a revised valuation range of $47 to $51.00 per share, a level he described as a "conservative" forecast. Today, the Nasdaq-quoted stock was changing hands at around $39.03 a piece.
You can read Webber's GLNG note in full by clicking on the link located under the related media section to the right of this article.
