In a report released today, Gabriele Sorbara from Siebert Williams Shank & Co reiterated a Hold rating on Expand Energy (EXE – Research Report), with a price target of $115.00.
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Gabriele Sorbara has given his Hold rating due to a combination of factors surrounding Expand Energy’s recent performance and future outlook. The company reported strong first-quarter results for 2025, surpassing expectations in key areas such as operating costs, pricing, and capital expenditures. However, despite these positive results, the decision to focus on debt reduction rather than share buybacks might have been a letdown for some investors, especially considering the higher-than-expected free cash flow.
Sorbara’s Hold rating is primarily influenced by valuation concerns, as Expand Energy’s free cash flow yield for 2025 and 2026 is below the average of its peers. Additionally, while the company’s EV/EBITDA multiples are slightly below peer averages, the reaffirmed 2025 outlook and unchanged guidance suggest a stable but not overly compelling investment case at this time. Thus, the Hold rating reflects a cautious stance, balancing the company’s strong financial performance with its relative valuation metrics.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $103.00 price target.