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On Thursday, KeyBanc Capital Markets adjusted their outlook on Gulfport Energy (OTC:GPORQ) shares (NYSE:GPOR), increasing the price target to $215 from the previous $205 while maintaining an Overweight rating. The revised target follows the company’s first-quarter earnings report, which led to an update in financial modeling due to a decrease in dilution from preferred shares. According to InvestingPro data, GPOR is currently trading at $193.12, near its 52-week high of $201.18, with analysis suggesting the stock remains undervalued despite recent gains.
Gulfport Energy’s preferred equity shares have been reduced to 2.3 million from 3.1 million, effectively lowering the company’s enterprise value by nearly $200 million. In response to this change, KeyBanc now anticipates Gulfport will engage in discretionary acreage acquisitions in 2025, estimated at $60 million, and has increased its forecast for share repurchases in 2025 and 2026 to $320 million and $350 million, respectively. InvestingPro data reveals management has been aggressively buying back shares, with 10+ additional exclusive insights available to subscribers.
While acknowledging the potential for transformative mergers and acquisitions given Gulfport’s stronger equity position, KeyBanc analysts suggest that management’s indications point towards a continuation of smaller-scale land acquisitions in 2025. The reduction in preferred equity count was cited as the primary driver for the price target increase, with earnings per share estimates raised to reflect the lower share count. EBITDA estimates remain unchanged.
KeyBanc’s analysis highlights that Gulfport Energy shares are currently undervalued compared to its gassy peers, despite a year-to-date performance of +4.8%, which slightly lags behind the average performance of other public gassy peers at +5.5% year-to-date. The firm’s outlook suggests confidence in Gulfport’s financial strategy and asset management moving forward. With a market capitalization of $3.43 billion and revenue growth of 11% in the last twelve months, Gulfport operates with a moderate level of debt and maintains strong financial metrics. For comprehensive analysis including Fair Value calculations and detailed financial health scores, visit InvestingPro, where you’ll find the complete Pro Research Report on GPOR among 1,400+ top stocks.
In other recent news, Gulfport Energy reported its first quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $5.61, surpassing the forecast of $5.20. However, the company fell short of its revenue target, reporting $255.95 million against a projected $325 million. Despite the revenue miss, Gulfport Energy highlighted operational efficiencies and strategic shifts towards dry gas development, which are expected to enhance future performance. In a separate development, Gulfport Energy announced a stock repurchase agreement with Silver Point Capital, acquiring 76,986 shares for approximately $15 million. This transaction is part of Gulfport’s ongoing $1 billion repurchase program, which now has around $324.4 million remaining. The company’s commitment to returning value to shareholders is evident through this buyback initiative. Analyst firms like KeyBanc and JPMorgan have noted these strategic moves, with KeyBanc focusing on the company’s shift in capital allocation. These developments underscore Gulfport Energy’s strategic focus on enhancing shareholder value while navigating revenue challenges.
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