Citizens JMP maintains FTAI Infrastructure stock at $12 target

Published 17/03/2025, 10:18
Citizens JMP maintains FTAI Infrastructure stock at $12 target

On Monday, Citizens JMP reiterated its Market Outperform rating and $12.00 price target for FTAI Infrastructure stock (NASDAQ: FIP), despite the company’s fourth-quarter earnings falling short of expectations. Analysts at the firm acknowledged the lower-than-anticipated adjusted EBITDA of $29 million, which was $10 million below their estimate. The underperformance was attributed to several sectors within the company, including Transtar, Sustainability & Energy Transition, Long Ridge, Jefferson Terminal, and Corporate/Other, each contributing to the shortfall.

The analysts pointed out that while the market may have been disappointed with the fourth-quarter results, it’s important to consider the company’s performance over a longer period. They highlighted that FTAI Infrastructure’s adjusted EBITDA grew by 19% year-over-year in 2024 and has more than doubled since 2022. The emphasis was placed on the broader financial health and growth trajectory of the company rather than short-term quarterly fluctuations. InvestingPro analysis shows the stock trading near its 52-week low of $4.73, with a significant year-to-date decline of 33.47%. The stock’s current valuation metrics and 13 additional real-time ProTips are available to subscribers.

Looking forward, Citizens JMP analysts expressed optimism about FTAI Infrastructure’s prospects for 2025, labeling it as potentially a "transformational" year. They anticipate that the company will reach several key milestones and experience significant growth. The firm’s analysts suggest that investors shift their focus to the forthcoming developments and the potential for FTAI Infrastructure to capitalize on these opportunities in the year ahead.

The analysts’ maintained rating and price target reflect their confidence in the company’s fundamental strengths and the expectation of positive performance in the future. As FTAI Infrastructure prepares for the anticipated milestones in 2025, the firm’s rating indicates a belief in the company’s ability to overcome the recent earnings hiccup and deliver value to its shareholders.

In other recent news, FTAI Infrastructure LLC reported its fourth-quarter 2024 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of -$1.24, significantly below the forecasted -$0.36, and revenue of $80.76 million, missing the projected $96.43 million. Despite these results, FTAI Infrastructure’s stock experienced a rise in after-hours trading, suggesting investor optimism about the company’s strategic direction. The company also reported a full-year adjusted EBITDA of $127.6 million, an increase from $107.5 million in 2023.

FTAI Infrastructure is projecting an EBITDA potential of over $400 million for 2025, driven by strong demand in the power and transportation sectors and strategic expansions. The company has completed debt refinancing and acquired a 49.9% stake from its equity partner at Long Ridge, expecting to generate about $160 million in annual EBITDA from this asset. Additionally, FTAI Infrastructure is exploring mergers and acquisitions in the rail sector, with TransStar showing promising growth prospects. The company plans to capitalize on new business opportunities, including potential data center developments at Long Ridge.

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