BTIG analyst Gregory Lewis has reiterated their bullish stance on NFE stock, giving a Buy rating on November 2.
Gregory Lewis has given his Buy rating due to a combination of factors. New Fortress Energy (NFE) recently reported earnings with an Adjusted EBITDA of approximately $208M, slightly above the consensus. The company’s focus has shifted towards meeting the increasing demand in Puerto Rico, which is a key aspect of NFE’s long-term strategy. Furthermore, the company’s gas trading revenue was limited in Q3, which is seen as a positive shift. The company’s stock has seen a sharp rebound, partially due to confusion about FLNG #1’s ability to sell gas, but now targets commercial volumes next month.
Moreover, NFE has already achieved first gas for FLNG #1 and is expected to start shipping commercial volumes either in December or early next year. This situation will enable the company to take advantage of the spread between US natural gas prices and International natural gas prices, which is viewed as a significant near-term catalyst for the stock. Furthermore, with the startup of three projects by January, NFE should start pulling FLNG volumes downstream, which will help the company capture a wider spread. Finally, the company has taken steps to manage its balance sheet, including funding its remaining capex through a new term loan and agreements for Brazil-infrastructure debt. NFE also plans to divest assets to accelerate the pace of deleveraging.
According to TipRanks, Lewis is an analyst with an average return of -4.3% and a 43.22% success rate. Lewis covers the Energy sector, focusing on stocks such as TechnipFMC, Helix Energy, and Tidewater.
In another report released on November 2, Citi also maintained a Buy rating on the stock with a $43.00 price target.
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New Fortress Energy (NFE) Company Description:
New Fortress Energy LLC engages in the provision of energy infrastructure and development services. It specializes in the fields of power, infrastructure, transportation and liquefied natural gas (LNG). Its LNG production and delivery model includes liquefaction, logistics, shipping and terminals. The company was founded by Wesley Robert Edens in 2014 and is headquartered in New York, NY.
Read More on NFE:
- New Fortress Energy charters Petrobras’ FSRU Energos Winter starting December 20
- New Fortress Energy selloff on investor confusion ‘hard to justify,’ says Citi
- New Fortress Energy could need to reapply for Mexico LNG permit, Reuters says
- New Fortress Energy price target raised to $33 from $32 at BofA
- New Fortress Energy sees FY24 adjusted EBITDA about $2.4B
