Dorian LPG (LPG) Stock Forecast & Price Target

Dorian LPG's stock outlook appears positive due to the significant growth in liquefied petroleum gas (LPG) exports, with US exports on VLGCs reaching 28.0 million tons in the first half of 2025, indicating an 8.3% year-over-year increase, alongside a 4.9% year-over-year rise in Middle East exports totaling 20.7 million tons. The company's ability to navigate and absorb the increased capacity brought on by shorter-haul voyages has resulted in heightened forward expectations for the sector. Furthermore, the robust trade growth in both the US and Middle East regions positions Dorian LPG favorably within the expanding LPG transportation market.

Dorian LPG's outlook appears negative primarily due to expectations of declining spot rates for VLGCs, which are projected to fall from an average of $50,000/day down to closer to $30,000/day. Additionally, inconsistencies in regional pricing and competition from naphtha, along with rising shipyard construction costs driven by labor and material changes, may negatively influence both charter rates and vessel values. Furthermore, although growth volumes in key export markets remain strong, the slowing of newbuilding deliveries is anticipated to limit VLGC fleet capacity growth to just 3% in the coming year, a significant decline from previous rates of 7% and 12.5%.