Global Partners stock target cut to $53 by Stifel analysts

On Wednesday, Stifel analysts revised the price target for Global Partners, L.P. (NYSE:GLP) shares, reducing it to $53.00 from the previous $56.00 while maintaining a Hold rating. The adjustment follows Global Partners’ first-quarter 2025 results, which exceeded expectations, particularly due to performance in the wholesale segment. The company, currently trading at a P/E ratio of 15.4x and offering a 6% dividend yield, is considered overvalued according to InvestingPro Fair Value calculations.

The company’s recent quarter benefited from a colder winter that spurred increased distillate demand. With a market capitalization of $1.66 billion and revenue growth of 6% over the last twelve months, Global Partners saw positive effects from its newly acquired assets. The firm also experienced a temporary advantage due to volatility in Canadian crude oil prices, which was influenced by tariffs.

While Global Partners anticipates that it will be relatively shielded from the impacts of tariffs, the company acknowledged the possibility of minor effects on consumer behavior at its retail locations. Despite these considerations, Stifel’s analysts have chosen to maintain their Hold rating on the stock.

The updated price target of $53.00 reflects the analysts’ current valuation of Global Partners’ shares. The company’s first-quarter performance and strategic asset acquisitions have been significant factors in this assessment, alongside the consideration of external market conditions such as tariff-related volatility and its potential influence on consumer behavior.

In other recent news, Global Partners LP reported its first-quarter 2025 earnings, showcasing a significant turnaround with an earnings per share (EPS) of $0.36, surpassing the forecasted loss of $0.05. The company’s revenue for the quarter was $4.59 billion, which fell short of the anticipated $5.65 billion. Despite the revenue miss, the company reported a net income of $18.7 million, marking an improvement from a net loss in the previous year. The company also announced an increase in its quarterly cash distribution to $0.07 per unit. Additionally, Global Partners’ EBITDA rose to $91.9 million from $56.9 million year-over-year. Analysts from Stifel noted the positive impact of a colder winter on the company’s wholesale segment, which contributed to favorable market conditions. The company remains focused on strategic growth and operational efficiency, with plans for disciplined capital allocation and potential mergers and acquisitions.

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