Texas Capital upgrades Texas Pacific Land on data center, energy transition bets

Published 26/06/2025, 14:26
© Reuters.

Investing.com -- Texas Capital on Thursday upgraded Texas Pacific Land (NYSE:TPL) Corp to Buy and raised its price target to $1,280 saying it has a growing confidence in the landowner’s push into data centers, power projects, and water infrastructure in the Permian Basin.

The brokerage said it expects Texas Pacific to de-risk its desalination project and make progress on at least one power or data center venture by the end of the year, marking a potential inflection point for the stock.

The shares have lagged behind peers in recent months despite what Texas Capital described as a stronger outlook for TPL’s so-called “next-gen” businesses.

Texas Pacific, one of the largest landholders in Texas, has been exploring ways to monetize its extensive acreage through infrastructure partnerships and energy transition-linked developments.

The company could also play a key role in industry consolidation, with larger ranches in the Permian expected to come to market over the next few years, the note said.

Texas Capital analysts hosted the company’s top executives, including CEO Tyler Glover and CFO Chris Steddum, for investor meetings in Boston on June 23.

Shares of Texas Pacific Land Corp were trading marginally up 1,038.11 on early trading on Thursday, down about 7% year-to-date.

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