UBS has upgraded shares in Teekay LNG Partners despite a weaker than forecast second quarter performance.
Analyst Spiro Dounis boosted the MLP from neutral to buy noting compelling yield above 10%.
“TGP is trading 330bps above its lifetime yield and at levels not seen since the financial crisis,” the analyst said in a report today.
Teekay LNG Partners yesterday reported adjusted net income of $39.5m for the second quarter, against $42.6m a year ago.
Earnings per share of $0.32 missed the $0.48 per share projected on Wall Street.
Noah Parquette of JP Morgan said in a post results update to clients: “TGP has sold off along the rest of the energy-related MLP sector.
“We believe this has created a great buying opportunity, as the company’s charter coverage and duration makes it relatively insulated from broader weakness in the LNG sector.”
