UPDATE: Citi Raising Price Target on Teekay LNG Partners
Citi Investment Research is out with a research report on Teekay LNG Partners LP (NYSE: TGP) and it is raising its price target to $34 from $31.50, and it has a Neutral rating on shares.
In a note to clients, Citi Investment Research writes, "TGP has entered into a 52:48% JV with Marubeni Corp. to acquire interest in eight LNG carriers from A.P. Moller-Maersk A/S for $1.4 billion. The acquisition includes 100% ownership interest in six vessels and 26% interest in two vessels. Five vessels are under long-term fixed-rate time-charter contracts with remaining duration of ~17 years. The other three are currently operating under short- term fixed-rate contracts including one with an extension option into a long-term contract. Current owners of the 74% interest in two vessels have the right to either buy out JV's 26% interest or sell their interest to the JV before closing of the deal. Teekay will operate the JV assets and the deal is expected to close in early 2012."
Shares of TGP closed at $34.03 yesterday.
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