Mizuho maintains Outperform rating on Expand Energy stock amid price volatility

Investing.com - Mizuho has reiterated an Outperform rating on Expand Energy (NASDAQ:EXE) with a price target of $136.00, according to a research note released Wednesday. The company, currently valued at $25.23 billion, trades at $106.24 per share. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The firm noted that while Expand Energy’s operations remain strong with volumes exceeding both the mid-point and consensus expectations, with current EBITDA at $3.25 billion, Mizuho anticipates a decline in street EBITDA and free cash flow estimates ahead of third-quarter 2025 earnings due to blended commodity prices falling approximately 11% quarter-over-quarter.

Mizuho highlighted that the key focus for Expand Energy centers on the near to medium-term outlook for natural gas prices, with the company maintaining cautious optimism on days of tight demand, as well as its risk appetite for longer-term market exposure to secular demand themes such as LNG exports and AI data centers.

The research note mentioned that Expand Energy’s management has favored a pragmatic approach to gas price volatility, a stance that appears to resonate well with investors based on Mizuho’s recent conversations.

Following Expand Energy’s announcement of accelerated debt reduction with second-quarter 2025 results, maintaining a moderate debt-to-equity ratio of 0.29, Mizuho does not anticipate material cash returns above the base dividend of 3% yield in the third quarter of 2025. For deeper insights into Expand Energy’s financial health and more exclusive analysis, visit InvestingPro, where you’ll find comprehensive research reports and additional ProTips.

In other recent news, Expand Energy Corp reported its Q2 2025 earnings, revealing a revenue of $3.69 billion, which significantly exceeded the forecast of $2.57 billion. Despite this revenue success, the company’s earnings per share (EPS) came in at $1.10, slightly missing the forecast of $1.13. Additionally, the company announced a leadership change as Brittany Raiford was named Interim Chief Financial Officer following the departure of Mohit Singh. Raiford, who joined Expand Energy through its merger with Southwestern Energy Company, has been with the company since 2024. In analyst developments, Mizuho raised its price target for Expand Energy to $154, citing a solid operational and financial performance in the recent quarterly results. The firm maintained an Outperform rating, highlighting an improved free cash flow outlook. These recent developments underscore the dynamic changes and financial performance of Expand Energy.

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