GasLog Partners' distribution growth running out of steam, analyst says

|About: GasLog Ltd. (GLOG)|By:, SA News Editor

GasLog Partners' (GLOP -9.5%) plunges after Morgan Stanley downgrades shares to Equal Weight from Overweight with an $18 price target, cut from $23, believing GLOP's ability to accretively fund new dropdowns has become more challenging.

Stanley analyst Fotis Giannakoulis also says GLOP's current distribution is not fully covered by free cash flows and sees distribution capacity as reaching a plateau.

Stanley maintains its Equal Weight rating for parent GasLog (GLOG -1.5%) but cuts its price target to $15 from $20, noting liquefied natural gas carrier fundamentals have softened due to a rising order book coupled with the sharp decline in global LNG prices.

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