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Investing.com - Freedom Broker has lowered its price target on Genie Energy Ltd. (NYSE:GNE) to $18.00 from $23.40 while maintaining a Buy rating following the company’s mixed second-quarter 2025 results. According to InvestingPro analysis, the stock appears undervalued, with shares down nearly 20% in the past week and showing oversold conditions.
The firm cited margin compression in Genie Energy’s core retail energy segment as the primary reason for the adjustment, noting that higher wholesale commodity prices and unusually hot weather significantly reduced profitability during the quarter. Despite these challenges, the company maintains strong fundamentals with a healthy balance sheet showing more cash than debt and sufficient liquidity to cover short-term obligations.
Despite the quarterly shortfall, Genie Energy reaffirmed its full-year adjusted EBITDA guidance of $40-50 million, suggesting the company expects margin normalization in the second half of 2025.
Freedom Broker has slightly increased its fiscal year 2025 revenue estimate by 0.8% to $482 million, while reducing its adjusted EBITDA expectations by 19% to $43.2 million, positioning its forecast closer to the lower end of the company’s guidance range.
The firm also downgraded its 2025 EPS estimate by 27%, from $0.79 to $0.57, but maintains a constructive long-term view on the company despite the target price reduction.
In other recent news, Genie Energy announced its second-quarter earnings for 2025, which showed mixed results. The company reported earnings per share of $0.11, while revenue increased by 16% year-over-year to reach $105.3 million. Despite this revenue growth, the company’s performance in adjusted EBITDA and gross profit did not meet expectations. These financial results led to a notable decline in the company’s stock price. Investors responded to the lower-than-expected financial metrics, highlighting the importance of these figures in market reactions. The earnings report underscores the challenges Genie Energy faces in meeting market projections. Analysts will likely be closely monitoring the company’s future performance to assess its financial trajectory.
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