Jefferies Upgrades Dorian LPG with “Buy” Rating and Increased Price Target
November 21, 2023
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Dorian ($NYSE:LPG) LPG Ltd. is a leading international owner and operator of modern very large gas carriers (VLGCs) in the shipping industry, with a focus on the transportation of liquefied petroleum gas (LPG) around the world. Recently, Jefferies has upgraded Dorian’s stock with a “Buy” rating and raised its price target. This upgrade has caused Dorian’s shares to increase in value. Jefferies analysts highlighted the company’s strong fleet profile and the current bullish market outlook for LPG shipping as reasons for giving Dorian the “Buy” rating. The increased price target and positive sentiment from Jefferies has led to a surge in investor interest, driving up the stock of Dorian.
The Jefferies upgrade has been met with enthusiasm by many investors due to Dorian’s strong fundamentals and attractive return opportunities. The company boasts a modern, efficient, and well-maintained fleet of VLGCs, making it an attractive option for those looking to invest in the shipping sector. Dorian’s long-term outlook appears to be strong, and the recent market developments further strengthen its position in the industry.
Stock Price
In response, DORIAN LPG stock opened at $39.4 and closed at $42.7, a rise of 9.3% from its previous closing price of $39.1. This increase was driven by investors’ optimism in the potential growth of the company following the upgraded rating. Jefferies’ upgrade was based on their analysis of the company’s fundamentals, which showed a solid balance sheet and a promising outlook for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dorian Lpg. More…
| Total Revenues | Net Income | Net Margin |
| 493.22 | 255.52 | 50.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dorian Lpg. More…
| Operations | Investing | Financing |
| 304.35 | -76.63 | -176.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dorian Lpg. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.78k | 860.72 | 22.86 |
Key Ratios Snapshot
Some of the financial key ratios for Dorian Lpg are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.9% | 32.4% | 58.1% |
| FCF Margin | ROE | ROA |
| 48.2% | 19.8% | 10.0% |
Analysis
At GoodWhale, we conducted a thorough analysis of DORIAN LPG‘s fundamentals. Our Star Chart analysis revealed that DORIAN LPG is classified as a ‘cheetah’, meaning that the company has achieved high revenue or earnings growth, but may be considered less stable due to lower profitability. We believe that this type of company may be of interest to investors who are looking for high-growth opportunities with some risk. In terms of its financial indicators, DORIAN LPG is strong in terms of growth, medium in asset, dividend, and profitability, and has a high health score of 8/10 with regard to its cashflows and debt. This indicates that DORIAN LPG is capable of paying off debt and funding future operations. More…
Peers
The global liquefied petroleum gas (LPG) market is expected to grow at a CAGR of over 5% during the period 2019–2024. The LPG market is highly competitive with the presence of several large and small players. The four largest players in the market are Dorian LPG Ltd, Navigator Holdings Ltd, Avance Gas Holding Ltd, and Exmar NV, which together accounted for a market share of around 40% in 2018. The company has a strong presence in all major LPG shipping regions, including the Atlantic Basin, the Mediterranean, the Far East, and Australia. Navigator Holdings Ltd is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world. Avance Gas Holding Ltd is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world. Exmar NV is a leading global provider of seaborne transportation solutions for liquefied petroleum gas (LPG). The company has a modern and efficient fleet of Very Large Gas Carriers (VLGCs), which it uses to transport LPG to its customers around the world.
– Navigator Holdings Ltd ($NYSE:NVGS)
Navigator Holdings Ltd owns and operates a fleet of very large ethane and liquefied petroleum gas carriers. As of March 31, 2021, the company’s operated fleet consisted of 44 vessels. It serves energy companies, refiners, and chemical producers in the United States, Europe, Asia, and South America.
– Avance Gas Holding Ltd ($OTCPK:AVACF)
As of 2022, Avance Gas Holding Ltd has a market cap of 435M and a Return on Equity of 7.85%. The company is a leading provider of liquefied petroleum gas (LPG) transportation and storage services. It operates a fleet of LPG carriers and has a global customer base. The company is headquartered in Singapore.
– Exmar NV ($LTS:0EEV)
Exmar NV is a Belgian shipping company that was founded in Antwerp in 1892. The company is involved in the maritime transportation of crude oil, natural gas, and petrochemicals. As of 2022, Exmar NV had a market capitalization of 561.39 million euros and a return on equity of 0.89%. The company’s fleet consists of approximately 60 vessels, including crude oil tankers, liquefied natural gas carriers, and floating storage units.
Summary
Dorian LPG experienced a rise in its stock price after receiving a “buy” rating and a price target hike from Jefferies on the day. This bullish sentiment sent investors into a buying frenzy, pushing up the stock price. Analysts at Jefferies believe that the company’s fundamentals are strong, and that there could be further upside potential for investors.
They have cited their opinion that Dorian LPG is well-positioned to benefit from a recovering global tanker market as well as possible acquisitions in the near future. This sentiment by Jefferies is a vote of confidence for the company and investors should take this into account when making investing decisions.
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