Pareto has revised its rating for Cool Company (CLCO, Financial) from Sell to Hold, setting a price target of NOK 60. According to the analyst, current market challenges are already being reflected in the stock's valuation. Investors receive this guidance as a part of Pareto's research notes. The outlook suggests that Cool Company is adjusting to market conditions, implying a stabilization in its share pricing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Cool Co Ltd (CLCO, Financial) is $14.75 with a high estimate of $16.00 and a low estimate of $13.50. The average target implies an upside of 143.40% from the current price of $6.06. More detailed estimate data can be found on the Cool Co Ltd (CLCO) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Cool Co Ltd's (CLCO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cool Co Ltd (CLCO, Financial) in one year is $11.62, suggesting a upside of 91.75% from the current price of $6.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cool Co Ltd (CLCO) Summary page.
CLCO Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cool Co Ltd (CLCO, Financial) reported a slight increase in revenue for Q4 2024, reaching $84.6 million, primarily due to fewer dry dock days.
- The company maintains a strong backlog of $1.7 billion, with over $1 billion being firm, providing solid support in a challenging market.
- Adjusted EBITDA increased modestly to $55.3 million, reflecting improved operating revenues.
- Cool Co Ltd (CLCO) has a robust balance sheet with $288 million in liquidity and no debt maturities until mid-2029.
- The company is well-positioned for opportunistic growth, with a disciplined asset management approach and a focus on long-term market potential.
Negative Points
- The chartering market is experiencing historically low rates, with winter market conditions being particularly weak.
- Cool Co Ltd (CLCO) decided not to declare a dividend due to the current market conditions and the need for financial flexibility.
- The spot market rates are below economic break-even, impacting the company's vessels operating in this market.
- There is significant downward pressure on the near-term chartering market due to high LNG prices in Europe and the delivery of new vessels.
- The market is facing challenges such as geopolitical tensions, regulatory hurdles, and supply chain bottlenecks, which could impact future operations.
