GTT Receives Bullish Ratings from Barclays, Berenberg on LNG Carrier Boom

Gaztransport et Technigaz (GTT) received bullish analyst coverage on Wednesday, with both Barclays and Berenberg citing a record order backlog and an accelerating cycle of new liquefied natural gas (LNG) carrier orders as key growth drivers for the French engineering firm.

Analyst Upgrades and Outlook

Barclays initiated its coverage of GTT with an "overweight" rating and a price target of €275 per share. In a simultaneous note, Berenberg upgraded the stock to "buy" from "hold," increasing its price target to €245 from a previous €190.

Both investment banks project a surge in vessel orders that surpasses GTT's own guidance. Berenberg models 650 new LNG carrier orders over the next decade, compared to management's forecast of around 550. Barclays anticipates 500 to 600 orders by 2035, driven by new liquefaction capacity that it believes has only partially translated into vessel commissions.

Record Orderbook and Fleet Replacement

The positive outlook is underpinned by GTT's dominant market position and strong revenue visibility. The company's orderbook stood at a record €1.9 billion at the end of June 2026, comprising 306 orders, primarily for LNG carriers. According to company guidance cited by Barclays, this backlog is expected to secure approximately €300 million in revenue in the second half of 2026, followed by €655 million in 2027 and €603 million in 2028.

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Analysts highlighted two primary catalysts for future orders: rising global energy demand and a significant fleet replacement cycle.

• Berenberg identified 198 older steam-turbine vessels at near-term scrapping risk as they become economically uncompetitive due to tightening environmental rules and higher fuel costs.
• Barclays calculated that more than 250 carriers will be over 20 years old by 2030, a figure expected to rise to more than 500 by 2040.

Financial Strength and Market Dominance

GTT holds a commanding market share, with its membrane containment technology equipped on approximately 85% of the global LNG carrier fleet. Barclays noted that the company, protected by over 3,600 patents, has captured all new LNG carrier containment-system orders since 2016.

This market leadership translates into a robust financial profile. Barclays forecasts an 8.8% compound annual revenue growth rate for GTT from 2025 to 2028, with adjusted EBITDA margins remaining stable at 66% to 67%. The firm's asset-light licensing model allows it to convert 80% to 85% of EBITDA into free cash flow, supporting a policy to distribute at least 80% of net income as dividends.