Jefferies reinstates Newmed Energy stock with Hold, sets target at ILs13.30

Published 09/05/2025, 10:32
© Shlomi Yoseph, Delek Drilling PR

On Friday, Jefferies resumed coverage of Newmed Energy LP (TLV:NWMD) shares, issuing a Hold rating and setting a price target of ILs13.30. The decision comes as the firm acknowledges the value of Newmed Energy’s significant interest in the Leviathan gas field, located offshore Israel.

The analyst at Jefferies highlighted the 45% stake Newmed Energy holds in the Leviathan gas field as a key investment attraction, warranting a premium valuation due to the size and certainty of the resource, along with the potential for substantial growth. The Leviathan gas field is one of the largest natural gas fields in the Mediterranean Sea and is a major contributor to Newmed Energy’s portfolio.

Despite the positive outlook on the company’s assets, the analyst noted that Newmed Energy’s current trading price exceeds the non-binding offer from bp/ADNOC made in 2023, which was ILs12.05. The analyst pointed out that Newmed Energy’s stock is trading at high multiples and shows a low discount to its net asset value (NAV), suggesting that the current valuation is more aligned with the market’s expectations.

The coverage reinstatement by Jefferies reflects a cautious stance, indicating that while the underlying assets are strong, the market has already priced in much of Newmed Energy’s growth prospects. The set price target of ILs13.30 is indicative of the analyst’s view that the stock is fairly valued at its current level.

Investors in Newmed Energy will likely monitor the company’s performance closely, particularly in relation to the development and output of the Leviathan gas field, as well as any changes in the market’s valuation of the company’s shares. The Hold rating suggests that Jefferies advises investors to maintain their current position in the stock without increasing or decreasing their holdings significantly.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.