The analysts put the company’s target price at 0.537 euros a share, which is 37 percent above its current market value, and issued a Buy recommendation on the company’s shares.
“The bank‘s analysts welcome the actions taken by the company’s management so as to increase the revenues and profits on core activities. However, intensive competition for Belarus and Russia’s petroleum products among the ports in the Baltic countries will restrict the growth of the company’s reloading volumes and tariffs in the years to come. The earnings from the company’s participation in the development of LNG terminal project and from subsequent transfer of the terminal’s infrastructure to the natural gas operator will be minimal. Yet the largest added value, which cannot be seen as yet, will come from LNG imports and trade business, which Klaipedos Nafta should engage in,” Finasta said in a release.
The analysts believe that the construction of LNG terminal would make the company stop paying dividends until 2015. However, later Klaipėdos Nafta should achieve solid dividend yield again.
Klaipėdos Nafta traded for 0.393 euros on Wednesday.
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