Stifel maintains Buy on New Fortress Energy, target at $16

On Friday, shares of New Fortress Energy LLC (NASDAQ:NFE) maintained a Buy rating from Stifel analysts, who also reiterated a $16.00 price target. This affirmation comes after the energy company announced the sale of its Jamaican operations to Excelerate Energy (EE) for a sum of $1.055 billion. The stock, currently trading at $9.28, has seen a sharp 17% decline over the past week, though InvestingPro analysis suggests potential upside based on its Fair Value metrics. Analyst targets range from $8 to $34, reflecting diverse market opinions.

The transaction, which took place on Thursday, was anticipated by Stifel and aligns with their expectations. According to Stifel, while New Fortress Energy still has work to do to strengthen its balance sheet - currently carrying $9.5 billion in total debt - the sale represents the most significant step towards that goal. InvestingPro data reveals the company’s debt-to-equity ratio stands at 5.06, highlighting the importance of this strategic move. Analysts at Stifel believe that the company is poised for a substantial increase in cash flow as it launches new projects and implements cost-saving measures.

Stifel’s analysts expressed confidence in the potential for New Fortress Energy’s stock value to rise significantly more than it could fall. They see the current dip in stock price, following the announcement, as an opportunity for investors to purchase shares. The sale of the Jamaican assets is viewed as a strategic move that could enhance the company’s financial stability and future growth prospects.

The deal with Excelerate Energy marks a pivotal moment for New Fortress Energy as it refocuses its efforts on other areas of its business. Stifel’s continued support for the stock reflects an optimistic outlook on the company’s ability to navigate through the remaining challenges and capitalize on upcoming opportunities.

In other recent news, New Fortress Energy has announced the sale of its Jamaican assets to Excelerate Energy for $1.055 billion, a move expected to close in the second quarter of 2025. This transaction is aimed at optimizing New Fortress Energy’s asset portfolio and enhancing its financial flexibility. Meanwhile, Moody’s has downgraded the company’s ratings, citing high financial risks and a negative outlook due to significant debt and leverage concerns. New Fortress Energy’s strategy to address these issues includes divestments and debt reduction, with the sale of its Jamaican operations being a critical step.

Stifel analysts have maintained a Buy rating on New Fortress Energy, with a price target of $16.00, expressing optimism about the company’s potential to improve liquidity and cash flows. The analysts view the upcoming asset sale as a vital phase in strengthening the company’s balance sheet. Furthermore, New Fortress Energy has secured $1.27 billion in term loans, which will support capital expenditures and corporate needs. These financial developments underscore the company’s ongoing efforts to manage its debt and invest in growth opportunities.

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