Capital Products Limited Partners (CPLP)

[johnsyn]

UBS Cuts Outlook on Capital Product (CPLP); Market Softened, Challenges Continue

10:00 AM 8/24/2012 - StreetInsider

UBS maintains a 'Buy' on Capital Product (NASDAQ: CPLP) price target of $8.40 (from $10.50).

Analyst, Ronald J. Barone, said, "The Product Tanker spot market softened in 2Q '12 due to weak US and European demand and a lack of arbitrage opportunities. However, demand for Product Tankers is expected to grow by 5.7% in '12 and fleet growth is projected at 3.2%. The Crude Tanker spot market softened in June due to seasonally softer demand, high crude inventories and increased tonnage supply. Crude Tanker supply remains a concern as fleet growth is still at elevated levels."

"...we are reducing our EBITDA estimates to $99MM/$109.5MM/$114.5MM, from $144MM/$155MM/$160MM, for 12/ 13/ 14, respectively." (FY12 EPS estimate cut from $0.80 to $0.14. FY13 from $0.94 to $0.32 and FY14 from $1.03 to $0.40)

For an analyst ratings summary and ratings history on Capital Product click here. For more ratings news on Capital Product click here.

Shares of Capital Product closed at $7.70 yesterday, with a 52 week range of $5.26-$8.80.