Mizuho lowers XPLR Infrastructure stock price target to $10 on valuation

Published 13/08/2025, 11:52
Mizuho lowers XPLR Infrastructure stock price target to $10 on valuation

Investing.com - Mizuho has reduced its price target on XPLR Infrastructure (NYSE:XIFR) to $10.00 from $12.00 while maintaining a Neutral rating, citing current market multiples. The stock, currently trading at $9.64, has fallen over 60% in the past year, though InvestingPro analysis suggests the company is undervalued at current levels.

XPLR announced second-quarter 2025 adjusted EBITDA of $557 million, exceeding the consensus estimate of $545 million. The company reaffirmed its adjusted EBITDA guidance for 2025 at $1.85 billion to $2.05 billion and 2026 at $1.75 billion to $1.95 billion, with free cash flow before growth projected at $600 million to $700 million in 2026. With a robust gross profit margin of 63.4% and revenue growth of 7% over the last twelve months, the company maintains strong operational efficiency.

The infrastructure company also revealed plans to sell its Meade pipeline to Ares for approximately $1.078 billion, representing a 10.3x EV/EBITDA multiple. XPLR intends to use the proceeds to pay down project-level debt and buy out CEPF 2.

Year-to-date, XPLR has bought out two of five CEPFs and remains on target to acquire a third CEPF before the end of 2027, according to Mizuho.

The research firm noted that XPLR continues to execute on the strategic repositioning outlined in January, shifting from an acquisition and distribution model to one where the company retains and invests its cash flows into existing assets and attractive investments.

In other recent news, XPLR Infrastructure announced that two of its indirect subsidiaries have secured new senior secured term loan facilities totaling approximately $426 million to support renewable energy projects. This significant financial move includes a $254 million limited-recourse senior secured variable rate term loan facility, which will mature in June 2030. The loan is secured by all assets and equity interests of Clark Holdings and its subsidiaries, which collectively have a net generating capacity of about 191 megawatts. In addition to this, Jefferies has raised its price target on XPLR Infrastructure stock twice recently, first to $16 and then to $17, while maintaining a Buy rating. The investment firm noted that the company’s second quarter of 2025 was "uneventful," as management focuses on execution and balance sheet improvement. Jefferies also updated its forecast for Power Purchase Agreement pricing following a detailed Levelized Cost of Energy study. These developments indicate ongoing strategic financial maneuvers by XPLR Infrastructure to strengthen its position in the renewable energy sector.

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