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Stephens, a financial services firm, increased its price target for Excelerate Energy Inc (NYSE: EE) shares to $28.00, up from the previous target of $21.00. The firm has maintained an Overweight rating on the energy company's stock, signaling a positive outlook on its performance.
The upgrade is based on an improved growth outlook for Excelerate Energy. Stephens highlights that the global liquefied natural gas (LNG) supply is expected to rise by approximately 40% over the next five years, which presents significant growth opportunities for the company.
This optimistic scenario is supported by a substantial inventory of infrastructure projects and the scheduled delivery of a newbuild floating storage regasification unit (FSRU) in the second half of 2026.
The firm believes that Excelerate Energy's focus should be on funding these growth opportunities rather than increasing the return of capital to shareholders. According to Stephens, the company's project inventory and the upcoming FSRU are key factors that will underpin its long-term organic growth potential.
In the short term, Excelerate Energy's underlevered balance sheet is seen as a strategic advantage, enabling the company to compete for existing LNG infrastructure assets. This could potentially enhance the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) by the year 2025.
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