Morgan Stanley cuts Excelerate Energy price target to $28

On Thursday, Morgan Stanley (NYSE:MS) analysts adjusted their outlook on Excelerate Energy Inc (NYSE:EE), lowering the stock’s price target to $28 from the previous $29 while maintaining an Underweight rating. The stock, currently trading at $29.40, has shown remarkable strength with a 98.84% return over the past year according to InvestingPro data. Following the company’s fourth-quarter earnings report, which was released after the market closed on Wednesday, the firm’s analysts highlighted that Excelerate Energy’s EBITDA surpassed consensus estimates by 10%. Additionally, the company provided guidance for 2025 EBITDA that aligns with current expectations.

The earnings call brought attention to Excelerate Energy’s ongoing projects, including new-build floating storage regasification units (FSRUs) and conversions, underscoring the company’s dedication to expanding its core business. With a strong current ratio of 4.12 and an overall financial health score rated as "GOOD" by InvestingPro, the company maintains solid operational flexibility. Despite the positive earnings and strategic focus, Morgan Stanley’s revised price target reflects a modest increase in net debt and capital expenditures compared to their estimates, leading to a slight reduction in the stock’s valuation.

Excelerate Energy’s financial performance and forward-looking statements suggest a commitment to growth within its specialized segment of the energy market. The company’s efforts to grow its FSRU capabilities align with a broader industry trend towards flexible and mobile energy solutions.

The adjustment in price target by Morgan Stanley comes as analysts take into account the latest financial data and strategic investments made by Excelerate Energy. The new price target is indicative of the firm’s current valuation of the stock based on these factors.

Investors and market watchers will likely continue to monitor Excelerate Energy’s financial health and strategic developments, as well as any potential impacts these could have on the company’s stock performance in the competitive energy sector.

In other recent news, Excelerate Energy Inc. announced its fourth-quarter 2024 earnings, surpassing market expectations with an earnings per share (EPS) of $0.40, compared to the forecasted $0.35. The company’s revenue also exceeded projections, reaching $274.6 million against the expected $194.96 million. Excelerate Energy reported a record adjusted EBITDA of $348 million for the year, highlighting its strong operational performance. The company achieved a net income of $46 million for the quarter, contributing to a total annual net income of $153 million, which represents a 21% increase from the previous year. Excelerate Energy’s strategic focus remains on fleet expansion and strategic investments, with a projected adjusted EBITDA guidance of $340-$360 million for 2025. The company’s leadership emphasized its commitment to sustaining core operations, with over 90% of 2025 revenue expected from its core business. Analysts from firms like JPMorgan and Deutsche Bank (ETR:DBKGn) engaged with Excelerate Energy’s executives, discussing potential growth opportunities and strategic initiatives. The company also highlighted its ongoing exploration of LNG carrier acquisitions and FSRU deployments, indicating a focus on strategic growth initiatives.

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