Expand Energy (EXE – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst David Deckelbaum from TD Cowen upgraded the rating on the stock to a Buy and gave it a $116.00 price target.
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David Deckelbaum has given his Buy rating due to a combination of factors including an improved risk/reward scenario for natural gas following recent tariff announcements. He anticipates that a reduction in rigs will lead to below-average storage levels by 2026, resulting in higher natural gas prices. Expand Energy is strategically positioned to benefit from this situation, particularly with its growth capacity along the Gulf Coast, despite a recent decline in share prices.
Furthermore, Deckelbaum notes that Expand Energy is well-prepared to capitalize on any increase in gas prices, with over 92% of its projected production volumes for FY25 expected to come from dry gas in key regions like Haynesville and Appalachia. The company has announced ambitious growth plans, including the activation of deferred wells, which could lead to significant increases in production volumes. If the natural gas market supports higher volumes and sustained prices, Expand Energy could see substantial growth, enhancing its return on capital. The projected free cash flow yields for FY25 and FY26 further support the Buy rating.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $131.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EXE in relation to earlier this year.