On Friday, Stifel analysts increased their price target for SEI Investments (NASDAQ:SEIC) (NYSE: SEI) shares to $42, up from the previous target of $30, while reaffirming their Buy rating on the company's stock. The revision follows recent meetings with SEI's management, which reinforced Stifel's optimism about the company's market position and growth prospects. According to InvestingPro data, SEI is currently trading near its 52-week high of $35.61, with an impressive one-year return of over 360%.
The confidence in SEI Investments has been bolstered by the company's recent acquisition of Mobile Energy Rentals in September and subsequent new orders for power generation equipment, despite facing challenges from a tight supply chain. SEI has been successful in delivering a hybrid service that manages both baseload and backup power for a major AI data center client, which positions the company to meet anticipated increases in power generation demand. With a market capitalization of $2.35 billion and a strong current ratio of 3.61, InvestingPro analysis shows the company maintains solid financial health, supported by 16 additional ProTips available to subscribers.
Stifel's analysts anticipate that SEI's growth will be financed through free cash flow generated by its stable Logistics Solutions business, formerly known as Solaris. Additionally, the company may utilize debt financing and potentially issue equity, but analysts believe management will maintain a healthy balance sheet without overextending.
The revised price target of $42 is based on projections of SEI operating 1 GW of Power assets. Stifel suggests that forthcoming announcements regarding new power projects could serve as a catalyst for the company's stock in the upcoming months.
In other recent news, Solaris Energy Infrastructure has experienced significant developments in its operations and leadership. The company reported an executive leadership change, with COO Kelly Price retiring and CEO William A. Zartler taking over the role of the principal operating officer. This transition was officially announced in a regulatory filing.
Solaris Energy also recently priced an underwritten public offering of 6.5 million shares at $24.75 each, expected to yield around $156 million in net proceeds. The funds raised are set to support the expansion of power generation equipment to meet increasing customer demand. In addition, the company's shareholders approved the acquisition of Mobile Energy Rentals, and Solaris provided a $29.75 million loan to facilitate the purchase of power generation equipment.
Another key development is the company's adjusted EBITDA forecast for Q4 2024, which has been increased to be between $36 million and $39 million. This adjustment comes after strategic moves and growing demand, leading to the company placing orders for nine additional gas-fired turbines, each with a capacity of 16.5 megawatts.
Investment firm Piper Sandler maintained its Overweight rating on Solaris following these developments. These are all recent developments shaping the trajectory of Solaris Energy Infrastructure.
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