Fearnley Securities has downgraded the LNG carrier sector to “hold” and lowered target prices across the board.
“The medium-term outlook suggests spot earnings will remain dire for some time, set to weigh on cash flows,” analysts Fredrik Dybwad and Nils Thommesen said in a note.
“Longer-term charter rates are holding firm but should be pressured by a lack of triggers to pull spot rates meaningfully higher — suggesting asset values are also coming under pressure.
