Morgan Stanley cuts Excelerate Energy stock rating, raises PT

Published 31/01/2025, 10:46
Morgan Stanley cuts Excelerate Energy stock rating, raises PT

The revised rating and price target by Morgan Stanley (NYSE:MS) suggest a more cautious approach to Excelerate Energy’s stock amidst its recent strong performance in the market. The firm’s analysis implies that investors should be mindful of the company’s ability to execute on its growth prospects before assuming further upside in the stock’s valuation. For a comprehensive analysis of Excelerate Energy’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which includes expert insights and advanced metrics for over 1,400 US stocks. For a comprehensive analysis of Excelerate Energy’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which includes expert insights and advanced metrics for over 1,400 US stocks.

The revised rating and price target by Morgan Stanley suggest a more cautious approach to Excelerate Energy’s stock amidst its recent strong performance in the market. The firm’s analysis implies that investors should be mindful of the company’s ability to execute on its growth prospects before assuming further upside in the stock’s valuation. For a comprehensive analysis of Excelerate Energy’s valuation and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which includes expert insights and advanced metrics for over 1,400 US stocks.

The new price target of $29 per share represents an increase from the former target, indicating a recognition of some positive aspects of Excelerate Energy’s business. However, with the stock trading above what Morgan Stanley considers the fair value of the company’s existing assets, the downgrade to Underweight reflects a conservative outlook on the stock’s potential for near-term growth.

The revised rating and price target by Morgan Stanley suggest a more cautious approach to Excelerate Energy’s stock amidst its recent strong performance in the market. The firm’s analysis implies that investors should be mindful of the company’s ability to execute on its growth prospects before assuming further upside in the stock’s valuation.

In other recent news, Excelerate Energy has reported a robust Q3 2024 performance, with a 4% increase in adjusted EBITDA to $92 million from the previous quarter. The company also increased its quarterly dividend to $0.06 per share, reflecting its strong financial position. Furthermore, Excelerate Energy raised its 2024 adjusted EBITDA guidance to between $335 million and $345 million, underscoring its financial strength.

JPMorgan has downgraded Excelerate Energy’s stock rating to Underweight, citing risks associated with the company’s focus on emerging market countries and a slower-than-anticipated growth trajectory. Despite this, the company maintains robust liquidity, with a current ratio of 4.12, indicating a strong ability to meet short-term obligations.

Stephens, on the other hand, has reaffirmed an Overweight rating on Excelerate Energy’s stock, raising the price target to $36.00. This decision is based on the company’s growth trajectory within the global LNG market and its unique position as the only company with an uncommitted newbuild floating storage regasification unit (FSRU) under construction.

Excelerate Energy’s growth is bolstered by a solid contract portfolio expected to generate approximately $4 billion in future revenue. The company has secured a 15-year LNG deal with Petrobangla and a 20-year agreement with Venture Global, and is exploring potential LNG infrastructure opportunities in Vietnam and Alaska. These recent developments indicate a clear vision for the company’s future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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