Siebert Williams Shank & Co analyst Gabriele Sorbara reiterated a Buy rating on Infinity Natural Resources, Inc. Class A today and set a price target of $18.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors related to Infinity Natural Resources, Inc. Class A’s recent performance and strategic initiatives. Despite the company’s third-quarter results showing a larger than expected free cash flow deficit due to increased capital expenditures and weaker natural gas realizations, the fourth-quarter guidance appears more promising with reduced capital expenditures and stable production levels.
Furthermore, the company’s board has authorized a $75 million buyback program, which represents approximately 10.6% of the market cap. This move indicates management’s confidence in the company’s valuation, especially after the stock’s decline since its IPO earlier this year. Sorbara maintains a Buy rating based on the company’s attractive relative valuation metrics, such as EV/EBITDA and NAV, and its strong positive rate of change, despite the near-term impact on free cash flow due to its growth-oriented strategy.
Sorbara covers the Energy sector, focusing on stocks such as Vital Energy, Chord Energy, and Expand Energy. According to TipRanks, Sorbara has an average return of 19.5% and a 51.87% success rate on recommended stocks.