Dell falls as soft current quarter guide offsets Q2 beat, full-year outlook lift
Tuesday, Stifel analysts adjusted their outlook on New Fortress Energy (NASDAQ:NFE) shares, reducing the price target from $23.00 to $19.00 but maintaining a Buy rating. With the stock currently trading at $8.56, significantly below analyst targets ranging from $11 to $34, InvestingPro analysis suggests the stock is undervalued despite falling 71.55% over the past year. The firm acknowledged New Fortress Energy’s adjusted EBITDA surpassed expectations, in part due to the delayed recognition of cargo sales from previous quarters. Despite this, the company still outperformed its full-year 2024 guidance. According to InvestingPro data, the company’s EBITDA stands at $810.28 million, though its overall Financial Health Score remains "FAIR" at 2.08 out of 5.
The analysts noted the absence of a balance sheet and cash flow statement in the recent press release, hinting at the possibility of minor revisions to their projections. Nevertheless, they expressed confidence in their revised estimates for 2025, following management’s decision to lower guidance from $1.3 billion to $1.0 billion.
New Fortress Energy is reportedly making headway on the sale of its Jamaican assets and has engaged in several refinancing activities over the quarter. Stifel highlighted the company’s growth prospects in Puerto Rico and Brazil, along with the anticipated startup of FLNG (OL:FLNG) 2, which are expected to significantly boost cash flow.
Stifel’s analysts believe that as these catalysts come to fruition in the coming months, the risks associated with the equity should decrease, potentially leading to considerable upside. However, they also pointed out that the company faces substantial execution risks in achieving these goals.
In other recent news, New Fortress Energy LLC reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.13 compared to the forecast of $0.06. The company also achieved a revenue of $679 million, significantly exceeding the projected $547.68 million. Despite these positive financial results, New Fortress Energy reported a net loss of $240 million for the quarter. The company’s FLNG1 asset performed above capacity, contributing to operational success and supporting future growth projections. Looking ahead, New Fortress Energy anticipates a 50% growth in EBITDA over the next two years, driven by strategic initiatives in key markets such as Brazil and Puerto Rico. The company is also focused on asset sales, particularly in Jamaica, to deleverage and strengthen its balance sheet. Additionally, New Fortress Energy has been actively engaging in financial activities, including refinancing transactions and capital market activities, to ensure liquidity and support future projects. These developments highlight the company’s ongoing efforts to navigate challenges and capitalize on growth opportunities in the energy sector.
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