Update shared on 02 Dec 2025
KNOT Offshore Partners’ analyst price target has been reduced from $15.00 to $10.00, as analysts cite the recent takeover proposal as a key factor in adjusting expectations.
Analyst Commentary
Following the recent developments surrounding the takeover proposal for KNOT Offshore Partners, analysts have provided a range of perspectives reflecting both optimism and caution about the company's future outlook and valuation.
Bullish Takeaways
- Bullish analysts highlight that the takeover interest may signal underlying value in KNOT Offshore Partners' assets, which could support the revised valuation.
- Some analysts see ongoing contract stability in the company's fleet. This stability can offer predictable cash flows despite recent market uncertainties.
- The partnership's strong operational execution has been recognized, and efficient vessel management remains a positive factor for long-term growth.
- Analysts note that the lowered price target still leaves room for upside if the company successfully navigates the takeover process and delivers on strategic initiatives.
Bearish Takeaways
- Bearish analysts express concern that the uncertainty from the takeover proposal could affect KNOT Offshore Partners' market performance in the near term.
- There are reservations about growth prospects, as the proposal may indicate limited opportunities for organic expansion or reinvestment.
- Analysts are cautious that the revised price target reflects increased risk and reduced investor confidence in future earnings momentum.
- Possible changes in management or strategic direction stemming from the bid are viewed as potential sources of execution risk.
What's in the News
- Knutsen NYK Offshore Tankers AS submitted an unsolicited non-binding proposal to acquire an additional 70.80% stake in KNOT Offshore Partners LP for approximately $240 million, offering $10 per share in cash.
- If the proposed transaction is completed, Knutsen NYK Offshore Tankers AS and its affiliates would own 100% of KNOT Offshore Partners LP.
- The completion of the proposed acquisition is contingent upon approval by KNOT Offshore Partners' shareholders. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased from $10.67 to $10.67, indicating minimal change following the recent developments.
- Discount Rate has declined slightly from 10.74% to 10.68%, which reflects a marginally lower perceived risk.
- Revenue Growth projection remains steady at approximately 2.18%.
- Net Profit Margin has shown virtually no change, holding at 15.24%.
- Future P/E ratio has decreased slightly from 9.12x to 9.11x, suggesting a modestly lower earnings multiple expected by analysts.
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.