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Investing.com - Citi has raised its price target on Expand Energy (NASDAQ:EXE) to $140.00 from $125.00 while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $116.94, with the stock trading near its 52-week high of $123.34 after delivering an impressive 48.39% return over the past year.
The investment bank updated its model with revised estimates ahead of earnings, projecting discretionary cash flow of approximately $1.026 billion, slightly below the FactSet consensus of $1.038 billion. According to InvestingPro data, the company’s EBITDA stands at $1.226 billion for the last twelve months.
Citi estimates Expand Energy’s production and capital spending will be toward the top end of the company’s guidance range, with production aligning with consensus while capital expenditures may run slightly higher than market expectations.
The firm anticipates pricing differentials near the wide end of guidance due to recent market volatility, while operating expenses are expected to remain in line with previous forecasts.
Citi’s decision to raise the price target reflects growing visibility into Expand Energy’s production growth stability and positive long-term commodity fundamentals, with upcoming investor focus likely centered on long-term demand dynamics including LNG, data centers, and electrification.
In other recent news, Expand Energy reported its first-quarter 2025 earnings, surpassing expectations for earnings per share (EPS) but falling short on revenue forecasts. The company posted an EPS of $2.02, exceeding the forecasted $1.67 by 21%, while revenue came in at $2.2 billion against an anticipated $2.49 billion. Despite the earnings beat, the revenue shortfall raised concerns among investors. Analyst firms have shown varying confidence in Expand Energy, with KeyBanc Capital Markets maintaining an Overweight rating and projecting solid top-line growth, while Piper Sandler upgraded the stock to Overweight, citing its strategic positioning in the growing natural gas market.
KeyBanc also increased its price target for Expand Energy from $130 to $135, reflecting optimism about the company’s cash return potential. Piper Sandler further raised the price target to $139, highlighting Expand Energy’s strong well productivity and its position to benefit from rising demand for natural gas. Bernstein SocGen initiated coverage with an Outperform rating, setting a price target of $150, based on a positive outlook for natural gas and potential synergies. The firm forecasts $500 million in annual savings by 2026 from corporate cost reductions and enhanced drilling efficiency.
These developments indicate that Expand Energy is well-positioned to capitalize on market trends, despite the mixed results in its latest earnings report. The company’s strategic initiatives and analyst endorsements suggest potential for future growth, particularly in the natural gas sector.
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