New analyst coverage for Capital Product Product Partners is drawing high marks on expectations of stable cash flows and growth potential, despite pending exit of its tanker fleet.
US investment bank B Riley FBR has begun following the MLP's New York-listed shares, up 3.4% to $2.50 mid-day, with a buy rating and 12-month target price of $2.75.
"The MLP offers, in our view, the potential for higher distributable cash generation with a strong base of low-risk cash flows, as it is operating a diverse fleet of container, tanker and drybulk vessels under a combination of spot and long- and medium-term charter rates," analyst Liam Burke wrote in a note to clients.
