Intel stock extends gains after report of possible U.S. government stake
On Thursday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating on BKV Corp (NYSE:BKV) shares with a steady price target of $33.00. Currently trading at $17.15, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $24 to $33. The firm's analysts anticipate BKV to surpass its expected EBITDA for the first quarter of 2025 by approximately 9%. This projection is based on the company's performance, which aligns with volume expectations and benefits from higher-than-anticipated natural gas prices. The company's current EBITDA stands at $63.09 million, with InvestingPro data showing several key insights about BKV's financial health and market position. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
BKV's strategic plans for 2025 were designed to counteract the effects of reduced investment in previous years and to lay the groundwork for potential growth starting in 2026. While the current uptick in natural gas prices could lead to additional activities, analysts predict that the company's management will concentrate on executing its established capital plan. According to InvestingPro forecasts, BKV is expected to turn profitable this year with an EPS of $0.82, despite operating with moderate debt levels.
The company's Carbon Capture and Storage (CCS) business is another area of growth, with the CEO, Mr. Kalnin, announcing a 90 to 100-day timeline for revealing a financial partnership that will support this expansion. This announcement was made during the 4Q24 earnings call on February 26, 2025. Stakeholders are also keen on the company's projections for the ERCOT power markets, which will affect both the current year and the long-term outlook. With a market capitalization of $1.45 billion, BKV has seen its stock take a significant hit recently, presenting a potential opportunity for investors according to InvestingPro's Fair Value analysis.
Mizuho's price target for BKV is derived from a Net Asset Value (NAV) based approach, and the firm's continued confidence in BKV's stock performance is reflected in the maintained Outperform rating. As BKV prepares to release its first-quarter results, investors will be watching closely to see if the company's financials and strategic initiatives align with Mizuho's positive expectations.
In other recent news, BKV Corporation reported a net loss of $57 million for Q4 2024, with revenue reaching $119.78 million. Despite the loss, the company generated a positive adjusted free cash flow of $92 million for the year, maintaining a total liquidity of $436 million. In a related development, KeyBanc Capital Markets adjusted its price target for BKV Corp to $25 from the previous $27, while maintaining an Overweight rating. This adjustment follows a less-than-expected earnings projection for BKV's Power joint venture, which is anticipated to generate gross EBITDA between $130 million and $170 million, below the previously expected range. Furthermore, BKV announced the appointment of Dilanka Seimon as its first Chief Commercial Officer, emphasizing the company's focus on expanding its carbon capture and power generation capabilities. Seimon's extensive experience in the global energy sector is seen as a strategic asset for BKV's growth in these areas. These developments reflect BKV's ongoing efforts to strengthen its market position amid evolving industry dynamics.
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