Navigator Holdings upped at Clarksons after recent 10% pullback (NYSE:NVGS)

Navigator Holdings (NYSE:NVGS) +0.7% in Thursday’s trading as Clarksons Securities upgrades shares to Buy from Hold with a $20 price target, seeing a more attractive opportunity for investors after the stock’s nearly 10% decline since July 1.

Navigator’s (NVGS) ethylene terminal expansion remains on schedule, with completion expected by the end of this year, which will improve cash flows and potentially close some of the stock’s gap to net asset value, but the large disparity may be difficult to close without realizing some of the value, Clarksons analyst Frode Morkedal says.

Concern over the potential impact of the reversal of Panama Canal disruptions is a factor to consider, but 2025 “could be a decent year even with a normalization, as a decline in asset values is implicity priced in.,” Morkedal writes.

Last week, Navigator (NVGS) reported another strong quarter, helped by improved time charter earnings and higher fleet utilization.