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On Tuesday, Stephens analyst Mike Scialla adjusted the price target for Expand Energy (NASDAQ:EXE) to $118.00, down from the previous $123.00, while retaining an Overweight rating on the stock. Currently trading at $102.92 with a market capitalization of $23.95 billion, the stock has shown resilience with a 21% return over the past six months. Scialla’s revision reflects a cautious stance in light of recent commodity price trends, as he cited the impact of current NYMEX strip prices on the company’s net asset value (NAV) per share and target price. According to InvestingPro data, 13 analysts have recently revised their earnings estimates upward for the upcoming period.
Scialla’s projections for Expand Energy’s first-quarter production of 6.75 billion cubic feet equivalent per day (Bcfepd) align with the company’s guidance midpoint and represent a 3% quarter-over-quarter increase. However, this estimate is slightly below the consensus by 1%. Additionally, Scialla’s forecasts for cash flow per share (CFPS) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are modestly higher than consensus, by 1% and 2%, respectively. The company’s current EBITDA stands at $1.19 billion, with annual revenue of $4.26 billion.
The upcoming conference call with Expand Energy is anticipated to cover various topics of interest to investors. Scialla expects the discussion to revolve around the natural gas market dynamics, the resumption of previously deferred turn-in-lines (TILs), strategies for completing drilled but uncompleted wells (DUCs), the effects of trade policies, and the potential for new liquefied natural gas (LNG) and power demand agreements.
Scialla’s commentary indicates that despite the reduced price target, the Overweight rating suggests a continued positive outlook for Expand Energy’s shares. The analyst’s emphasis on the company’s upcoming conference call topics underscores the factors that could influence the stock’s future performance. With the next earnings report scheduled for May 6, 2025, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which offer exclusive financial metrics and expert analysis for over 1,400 US stocks.
In other recent news, Expand Energy has been the focus of several analyst updates following its latest financial developments. Benchmark analyst Subash Chandra raised the company’s price target to $112, noting stronger-than-expected gas volumes and differentials, and predicting that Expand Energy will exceed its first-quarter earnings per share (EPS) and EBITDA estimates. Mizuho (NYSE:MFG) Securities also increased its price target to $136, reflecting expectations for Expand Energy to surpass consensus estimates for EBITDA and cash flow per share. The firm highlighted the company’s strategic deployment of productive capacity in response to favorable natural gas prices.
Barclays (LON:BARC) analyst Betty Jiang upgraded Expand Energy’s stock rating from Equalweight to Overweight, increasing the price target to $122, driven by a projected gas supply deficit by 2026. UBS maintained its Buy rating with a $131 target, citing a positive outlook for the company’s growth strategy and financial management, including dividend payments and debt reduction. TD Cowen upgraded the stock to Buy, raising the target to $116 due to an improved risk/reward outlook following tariff announcements impacting natural gas storage levels.
These recent developments indicate a general optimism among analysts about Expand Energy’s position in the market, with a focus on its strategic growth and financial performance. The company’s ability to navigate the evolving energy landscape, particularly in the natural gas sector, remains a key point of interest for investors.
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