Capital Clean Energy Carriers

CPLP · NASDAQ

$19.85+$0.21 (+1.07%)TodayMarket closed · Oct 20, 4:00 PM ET

Prev close $19.64

CPLP analyst rating

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The case for and against

Updated Jul 31, 2024

Bull case

Capital Product Partners is positioned strongly in the market, supported by a robust cash flow and earnings trajectory that is helping to shift its debt to equity. The company anticipates a substantial growth in revenue, EBITDA, and adjusted free cash flow in the coming years, thanks to the strength of the container shipping market and successful sale of two vessels. Additionally, the ongoing delivery of its ships along with expectations of increasing natural gas demand globally, suggest a favorable future for earnings per share, indicating a positive outlook for its stock.

Bear case

Capital Product Partners is facing a range of financial and operational risks causing a negative outlook on its stocks. High net debt to EBITDA ratio, anticipated around 6-7x for several years, coupled with declining charter rates, reveal a potential degradation of cash flows. Additionally, difficulties refinancing debt, operational issues with vessels, and the company's need to access capital markets pose significant risks, further exacerbated by the decreased activity in the Asia-Pacific region and the shift towards the less profitable LNG shipping market.

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