China smartphone shipments slumped in June on inventory overhang: Jefferies
On Friday, Goldman Sachs analyst Neil Mehta reinstated coverage on Expand Energy (NASDAQ:EXE), assigning a Buy rating to the company’s shares with a 12-month price target of $121. This represents an 18% potential upside from the stock’s current trading price of $102.72. According to InvestingPro data, analyst targets for EXE range from $86 to $146, with the stock trading near its 52-week high of $109.47. The reinstatement follows the completion of Expand Energy’s merger with Chesapeake Energy (NYSE:CHK) and Southwestern Energy (NYSE:SWN).
The analyst cites several factors for the positive outlook, including Expand Energy’s focus on capital efficiency improvements, disciplined activity, and volatility mitigation. These strategies are expected to bolster the company’s operational strength in the future. InvestingPro analysis shows the company operates with a moderate debt level and maintains strong liquidity, with a current ratio of 2.0 and liquid assets exceeding short-term obligations. Mehta’s report notes the potential for gas production growth from the Haynesville region to meet increasing LNG export demands. However, he emphasizes that Expand Energy’s dual-basin exposure, in both Appalachia and Haynesville, allows for a cost-effective core business in Appalachia with additional growth opportunities in Haynesville.
Mehta further explains that this dual-basin approach positions the company advantageously in terms of basin takeaway constraints. The company’s operational focus is also described as durable and flexible, which Goldman Sachs believes will provide strong, long-term exposure to the structural improvement in natural gas prices over time.
Expand Energy’s merger with Chesapeake Energy and Southwestern Energy has been a significant move, combining resources and expertise. This strategic consolidation is intended to enhance the company’s market position and operational capabilities, as outlined by the Goldman Sachs analyst.
Investors and market watchers will likely monitor Expand Energy’s performance closely, particularly in relation to the company’s ability to capitalize on its dual-basin operations and respond to the dynamics of natural gas demand and pricing. The company’s focus on operational efficiency and mitigation of market volatility will be key factors in achieving the growth and value Goldman Sachs anticipates. InvestingPro subscribers have access to 12 additional investment tips and comprehensive financial metrics for EXE, including detailed profitability analysis and growth forecasts.
In other recent news, Expand Energy, the largest domestic gas producer, has been the center of multiple analyst firms’ attention due to its earnings and revenue results. Piper Sandler initiated coverage with a Neutral rating and a price target of $96.00, highlighting the company’s strategic geographic advantage and leading position in asset productivity. TD Cowen also initiated coverage, setting a price target of $108.00 and noting the company’s position as the largest natural gas producer in the United States.
JPMorgan assigned an Overweight rating and a price target of $112.00, citing the company’s strategic position in the Haynesville and Appalachia basins. Citi analysts increased the price target to $125 from the previous $115 while maintaining a Buy rating, following a revision of the company’s earnings model, which now anticipates a discretionary cash flow of approximately $802.3 million.
Benchmark analysts maintained a positive outlook, reaffirming their Buy rating and a $93.00 price target. They adjusted their fourth-quarter earnings per share and EBITDA estimates upwards to $0.30 and $807 million, respectively. These recent developments provide valuable insights for investors interested in Expand Energy’s performance and prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.