On Friday, Stifel, a financial services firm, adjusted its stock price target for New Fortress Energy (NASDAQ:NFE), a global energy infrastructure company, to $40.00, down from the previous target of $43.00. Despite this reduction, Stifel maintains a Buy rating on the company's shares.
The revision follows a recent decline in New Fortress Energy's stock value, attributed to concerns over delays in the company's Fast LNG unit located in Mexico. The analyst cited specific challenges, including adverse weather conditions and a ruptured pipe in the cold box, which have shifted the expected start-up date of the project.
Despite these setbacks, the analyst expressed confidence that the unit is currently producing LNG. This aligns with the company's announcement last Friday, which projected the unit to be operational within ten days, implying a commencement date by next Monday.
Stifel's analysis suggests that the market has overly negative expectations regarding the Fast LNG unit's start-up and anticipates a rebound in the stock price once the unit's operation is verified. The firm recommends investors to consider buying shares of New Fortress Energy at the current lower price in the low $20s, arguing that the stock is undervalued due to exaggerated concerns over the project's delays.
Furthermore, Stifel sees significant growth potential for New Fortress Energy in the next 12 to 24 months, suggesting that the company has substantial room for appreciation from its current levels.
In other recent news, New Fortress Energy is on the verge of starting liquefaction operations at its first Fast LNG unit in Altamira, Mexico. The company is set to produce liquefied natural gas (LNG) within the next 10 days and plans to deliver its first cargo in July. This development is a significant step in New Fortress Energy's global expansion efforts in the energy sector.
In financial news, the company reported a solid first quarter in 2024 with $340 million in EBITDA, meeting market expectations. Strategic expansions in Puerto Rico and Brazil are likely to bolster its position in the energy sector.
Still, CapitalOne has adjusted its outlook on New Fortress Energy, reducing the stock's price target from $34.00 to $32.00 based on the company's recent disclosures and projected financials.
Florida's 27th congressional district representative, Maria Elvira Salazar, recently sold her Class A common stock in New Fortress Energy Inc., with the transaction falling within the range of $15,001 to $50,000. These recent developments provide insight into the current state and potential future performance of New Fortress Energy. As always, this information is based on factual evidence and does not imply speculation or opinion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.