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Investing.com - Raymond (NSE:RYMD) James lowered its price target on Solaris Energy Infrastructure (NYSE:SEI) to $38.00 from $39.00 on Monday, while maintaining an Outperform rating on the stock ahead of second-quarter results. The target remains well within the current analyst range of $32 to $53, with SEI trading at $28.27.
The firm noted that Solaris Energy has pivoted from oilfield services to power generation over the past year, with its latest newbuild order set to create a 1.7 GW gas turbine fleet that is already 71% contracted. This transformation has driven impressive revenue growth of 33.59% over the last twelve months.
Despite SEI stock gaining 139.4% over the trailing twelve months, Raymond James believes the company’s 2027 EV/EBITDA multiple of approximately 5x remains "far below fair value." According to InvestingPro data, the company currently trades at a P/E ratio of 55.5x and maintains a moderate debt level, with 12 additional key insights available to subscribers.
The investment bank sees expanded opportunities for Solaris as a first-mover in bespoke builds with competitive pricing, speed, and layered services, while noting that booking the remaining 20-25% of fleet capacity should enable rated credit status and support dividend and fleet growth.
Solaris Energy Infrastructure is scheduled to report its second-quarter 2025 financial results on Tuesday after market close, with Raymond James expecting results in line with the company’s guidance.
In other recent news, Solaris Energy Infrastructure reported strong first-quarter 2025 financial results, exceeding both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.20, surpassing the forecasted $0.14, and generated revenue of $126 million, outpacing the anticipated $112.13 million. Barclays (LON:BARC) analysts have initiated coverage on Solaris with an Overweight rating, setting a price target of $42.00, highlighting the company’s rapid expansion in natural gas turbine capacity. Citi analysts also began coverage, issuing a Buy rating with a price target of $32.00, citing Solaris’s strategic position in the utility sector and its effective go-to-market strategy. The company’s recent growth includes expanding its natural gas turbine capacity by 340 MW, with plans for an additional 1,360 MW by 2027. This expansion aligns with the increasing demand from planned data centers across the United States. Solaris’s partnership with an anchor client is seen as a testament to its long-term capacity utilization. These developments reflect a positive outlook for Solaris Energy Infrastructure amidst growing energy demands.
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