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On Wednesday, BTIG analysts raised the price target for FTAI Infrastructure (NASDAQ:FIP) stock to $10 from $9, maintaining a Buy rating. Currently trading at $6.04 with a market capitalization of $693 million, the stock has shown strong momentum recently. This adjustment comes as FTAI Infrastructure’s EBITDA run rate, which stands at $93 million for the last twelve months, is expected to increase significantly. According to InvestingPro data, analysts anticipate robust sales growth this year.
The analyst highlighted that the acquisition of the remaining 50% stake in Long Ridge, finalized in February, is anticipated to contribute approximately $60 million in EBITDA this year. Additionally, FTAI Infrastructure is set to receive an incremental $30 million in annual capacity reserve payments from PJM starting this month.
Further growth is expected at the Jefferson facility, where three new contracts are scheduled to start this year, potentially adding around $25 million in EBITDA. This development points to an approximate 60% growth in EBITDA for Jefferson.
The company is also nearing the completion of construction financing for Phase 2 of Repauno, with management targeting around $80 million in EBITDA from the terminal upon its expected completion in the fourth quarter of 2026. With the Repauno financing addressed, FTAI Infrastructure aims to focus on refinancing approximately $578 million in preferred shares to alleviate interest rates.
In other recent news, FTAI Infrastructure LLC reported first-quarter 2025 earnings that exceeded expectations, with an earnings per share (EPS) of $0.89 compared to a forecast of -$0.36. However, revenue fell short, reaching $96.2 million against the anticipated $101.87 million. The company also priced a $300 million private bond offering through the New Jersey Economic Development Authority, split into two tranches maturing in 2035 and 2045 with interest rates of 6.375% and 6.625%, respectively. Additionally, Repauno, a subsidiary of FTAI Infrastructure, plans to enter a Senior Secured Credit Agreement for a $106 million term loan to refinance existing obligations.
Shareholders of FTAI Infrastructure ratified the appointment of Ernst & Young LLP as the independent auditor during the company’s Annual Meeting. They also elected two Class III directors, Joseph P. Adams, Jr. and Judith A. Hannaway. The company recorded a non-cash gain of $120 million and saw its adjusted EBITDA increase by 21% from the previous quarter. Analysts noted the company’s strong performance, with firms like Compass Point and Citizens discussing potential impacts of tariffs and growth opportunities in data centers and third-party railroads. These developments highlight FTAI Infrastructure’s strategic initiatives and financial activities in recent times.
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