Dorian LPG (LPG) Stock Forecast & Price Target

Dorian LPG Ltd is poised for a positive outlook, as US LPG exports on VLGCs reached 28.0 million tons in the first half of 2025, reflecting an 8.3% year-over-year increase, while Middle Eastern exports also grew by 4.9% to 20.7 million tons. The shipping sector has effectively absorbed the additional capacity resulting from shorter-haul voyages, leading to improved forward expectations for trade. This strong trade growth from both major exporting regions is a fundamental driver for the company's prospects in the liquefied petroleum gas shipping market.

Dorian LPG's financial outlook is negatively impacted by the anticipated decline in spot VLGC rates, with expectations suggesting a drop from an average of $50,000/day to about $30,000/day. Additionally, the company faces pressure from wide regional price differences and volatile charter rates, which are influenced by competing feedstocks like naphtha, as well as fluctuating costs associated with vessel construction. Furthermore, while growth in key US and Middle East export markets is noted, the projected slowing of newbuilding deliveries and overall fleet capacity growth diminishes a potentially favorable market environment.