The firm said it initiated coverage on the company, which owns and operates liquefied natural gas carriers and floating storage regasification units, based on its belief that its discounted cash flow analysis suggests that many projects may not be reflected in the Golar's current valuation.
"Our base case, which appears likely given progress to date, is the underpinning of our price target and suggests 32% upside from current levels, thus our "buy,"" the firm said.
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Shares of Golar LGN are higher by 0.88% to $50.50 in pre-market trading this morning.
Separately, TheStreet Ratings team rates GOLAR LNG LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLAR LNG LTD (GLNG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."