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On Wednesday, Stephens analyst Mike Scialla increased the price target for Expand Energy (NASDAQ:EXE) to $121 from $118, while reaffirming an Overweight rating on the company’s shares. Currently trading at $107.47, the stock is approaching its 52-week high of $114.03, having delivered a remarkable 28.36% return over the past six months. The adjustment follows Expand Energy’s first-quarter performance, which exceeded expectations, with earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flow per share (CFPS) surpassing consensus estimates by 7% and 12%, respectively. Additionally, the company’s capital expenditures were reported to be 6% lower than anticipated. According to InvestingPro, 13 analysts have recently revised their earnings estimates upward for the upcoming period.
The second-quarter capital expenditures guidance from Expand Energy was set at 9% higher than consensus projections. However, the company’s production and capital expenditure guidance for the year 2025 remained steady. Scialla’s decision to raise the net asset value (NAV) per share estimate and the target price is primarily attributed to changes in working capital. With a market capitalization of $25 billion and revenue growth forecast of 120% for FY2025, InvestingPro analysis suggests the company is currently trading above its Fair Value. Subscribers can access detailed valuation metrics and 12 additional ProTips in the comprehensive Pro Research Report.
Scialla’s commentary highlighted the company’s robust quarterly results, stating, "EXE delivered a strong quarter and remains on track to buy back shares in the second quarter of 2025 and build productive capacity by 300 million cubic feet equivalent per day (MMcfepd) in 2026."
The positive outlook for Expand Energy is further supported by the firm’s plans to repurchase shares in the second quarter of 2025. This move is part of a broader strategy to enhance shareholder value. Moreover, the company aims to increase its productive capacity significantly by the year 2026, which is expected to contribute to its growth trajectory.
Investors and stakeholders in Expand Energy can look forward to the company’s continued efforts to strengthen its financial position and operational capabilities, as indicated by the recent performance metrics and strategic initiatives.
In other recent news, Expand Energy has been the subject of several significant developments. KeyBanc Capital Markets upgraded Expand Energy’s stock rating to Overweight, citing confidence in the company’s ability to navigate current market dynamics and a new price target of $130. Moody’s Ratings also upgraded Expand Energy’s senior unsecured notes to Baa3, acknowledging the company’s successful debt reduction following its merger with Southwestern and its strategic hedging of natural gas production through 2026. Meanwhile, Stephens adjusted its price target for Expand Energy to $118, reflecting caution due to recent commodity price trends, though it maintained an Overweight rating. Barclays (LON:BARC) raised its rating for the company from Equalweight to Overweight, with an increased price target of $122, driven by a forecasted gas supply deficit and a bullish outlook for natural gas prices. UBS reiterated a Buy rating and maintained a price target of $131, projecting a positive outlook for the company and highlighting its strategic growth plans and financial management approach. These developments collectively underscore the company’s positioning within the energy sector and investor interest in its future performance.
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