KNOT Offshore Partners (KNOP): Alliance Global Sees Limited Upside

KNOT Offshore Partners LP (NYSE:KNOP) is one of the Best Micro-Cap Stocks to Invest in According to Analysts.

On December 8, Alliance Global downgraded KNOT Offshore Partners LP (NYSE:KNOP) to Neutral from Buy. In an investor note, the analyst noted that there was limited upside potential in the shares following the buyout offer. However, per the analyst, the offer could move up into the $12 per unit range.

On December 5, the company posted earnings for the third quarter of 2025, reporting revenue of $96.9 million, operating income of $30.6 million, net income of $15.1 million, and adjusted EBITDA of $61.6 million. The company also outlined that 93% of vessel time in 2026 was covered by fixed contracts, rising to 98% if all options were exercised.

KNOT Offshore Partners LP (NYSE:KNOP) acquires, owns, and operates shuttle tankers under long-term charters in the North Sea and Brazil.

While we acknowledge the potential of KNOP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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