Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stifel lowered its price target on Atlas Energy Solutions Inc (NYSE:AESI) to $14.00 from $14.50 on Monday, while maintaining a Buy rating on the stock. The company, currently valued at $1.45 billion, is trading near its 52-week low of $11.60. According to InvestingPro analysis, the stock appears undervalued at current levels.
The price target reduction follows Atlas Energy’s second-quarter 2025 results, which Stifel noted were "weaker-than-anticipated," with adjusted EBITDA missing consensus estimates by 6.9%.
The firm also pointed to Atlas Energy’s third-quarter 2025 guidance, which suggests a sequential decline in performance amid "near-term headwinds from lackluster U.S. completion activity and lower fac sand prices."
Despite these challenges, Stifel highlighted several positive factors supporting its maintained Buy rating, including the now fully operational Dune Express, which should help drive sales and market share, and momentum in the company’s Power Generation (HM:PGV) segment.
Stifel also expressed confidence in Atlas Energy’s expected solid free cash flow and the safety of its $0.25 quarterly dividend, which represents an 8.6% yield at current prices.
In other recent news, Atlas Energy Solutions Inc. reported its second-quarter 2025 financial results, highlighting a notable discrepancy in earnings per share (EPS) but a positive performance in revenue. The company reported an EPS of -$0.04, which was significantly below the forecasted $1.08, resulting in a negative surprise of 103.7%. However, Atlas Energy posted actual revenue of $288.7 million, exceeding the expected $239.17 million by 20.71%. These recent developments in the company’s financial performance reflect both challenges and strengths in its operations. While the earnings miss may concern some investors, the strong revenue beat indicates robust sales activity. The financial results have drawn attention from analysts and investors alike, as they assess the implications for Atlas Energy’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.