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Analysts at Morgan Stanley initiated coverage on shares of Hoegh LNG Partners (NASDAQ:HMLP) in a research report issued to clients and investors on Tuesday. The firm set an “equal weight” rating and a $24.00 price target on the stock. Morgan Stanley’s price target would suggest a potential downside of 7.30% from the company’s current price.

The analysts wrote, “HMLP is focused exclusively on the floating regasification segment of the LNG market, with a fleet of 3 modern purpose-built FSRU (1 fully owned, 2 in a 50/50 JV). It distributes an annual $1.35/unit that is well protected at 1.1x total unit coverage and by the 17 year average contract coverage for its initial fleet. HMLP’s distribution is guided to rise by 25%+ with the drop down of one already contracted FSRU, bringing it to ~$1.70 per unit by end-2015. We apply a 7% forward yield, equal to its peers’ target yield on their distribution after contracted dropdowns, resulting in our $24 PT. Our $32 bull case values the stock at a 6% yield and ~$1.90 distribution, assuming chartering and dropdowns of two uncontracted new builds and further growth of the drop down pipeline. Our $16 bear case values the stock at NAV.”

Hoegh LNG Partners (NASDAQ:HMLP) traded down 1.58% on Tuesday, hitting $25.48. 109,118 shares of the company’s stock traded hands. Hoegh LNG Partners has a 52 week low of $21.75 and a 52 week high of $26.00. The stock has a 50-day moving average of $24.57 and a 200-day moving average of $24.57. The company has a market cap of $670.4 million and a P/E ratio of 22.24.

Separately, analysts at Citigroup Inc. initiated coverage on shares of Hoegh LNG Partners in a research note on Tuesday. They set a “buy” rating and a $28.00 price target on the stock.

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