Update shared on 04 Nov 2025
Fair value Decreased 14%KNOT Offshore Partners' analyst price target was lowered from approximately $12 to $10. This change reflects analysts' concerns over the recent takeover proposal and a shift in underlying financial expectations.
Analyst Commentary
Recent research updates have provided a mixed outlook for KNOT Offshore Partners in light of the takeover proposal and revised financial expectations.
Bullish Takeaways
- Bullish analysts note that the takeover proposal may provide a pricing floor and limit further downside risk for the partnership's units.
- Some believe the company’s ongoing operations and contracted cash flows continue to support its underlying valuation, even after a target price adjustment.
- There is optimism that strategic changes following a potential acquisition could improve operational efficiency and boost long-term growth prospects.
- The revised price target, while lower, still represents upside potential from current trading levels. This suggests opportunities for disciplined investors.
Bearish Takeaways
- Bearish analysts express concern over the uncertainty created by the takeover proposal and how it might impact future distributions and governance.
- There are heightened worries about slower growth and limited execution catalysts in the near term, especially if the transaction process is prolonged.
- The reduction in price target also reflects skepticism about the partnership’s ability to deliver upside in a challenging macroeconomic backdrop.
- Potential changes to capital allocation priorities following the takeover could weigh on future returns for existing unit holders.
What's in the News
- Knutsen NYK Offshore Tankers AS has made an unsolicited, non-binding proposal to acquire an additional 70.80% stake in KNOT Offshore Partners LP for approximately $240 million, with a cash consideration of $10 per share. (Key Developments)
- If completed, the transaction would result in Knutsen NYK Offshore Tankers AS and its affiliates owning 100% of KNOT Offshore Partners LP. (Key Developments)
- The proposed acquisition is pending approval by the target shareholders. (Key Developments)
Valuation Changes
- Fair Value Estimate has declined from $11.97 to $10.30. This reflects a lower valuation outlook following the takeover proposal.
- Discount Rate has decreased from 13.15% to 12.32%. This suggests a modest reduction in the perceived risk.
- Revenue Growth forecasts have increased from 1.10% to 2.18%, indicating expectations for improved topline performance.
- Net Profit Margin projections have risen from 13.78% to 17.49%. This shows an anticipated improvement in profitability.
- Future Price-to-Earnings (P/E) ratio has dropped from 12.93x to 8.01x, implying a more attractive valuation based on future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.