In a report released yesterday, Gregory Lewis from BTIG reiterated a Buy rating on New Fortress Energy (NFE – Research Report), with a price target of $15.00.
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Gregory Lewis has given his Buy rating due to a combination of factors that highlight New Fortress Energy’s strategic growth and financial positioning. The company has successfully expanded its business in Puerto Rico, securing a long-term gas supply agreement for a new power plant, which is expected to significantly increase its gas sales and EBITDA. Additionally, the extension of the Island Wide gas supply contract and potential long-term extensions indicate a stable and growing demand for NFE’s services in the region.
Furthermore, NFE’s FLNG1 unit has surpassed its production capacity, providing the company with an excess supply of gas that can be sold in the open market to strengthen its financial position. The anticipated launch of FLNG2 is expected to further boost gas supply, supporting future growth. The company’s strategic decision to explore the sale of its Jamaican business to focus on more promising opportunities, along with recent successful financings, underscores its commitment to optimizing its portfolio and maintaining a healthy balance sheet.
According to TipRanks, Lewis is an analyst with an average return of -0.3% and a 41.60% success rate. Lewis covers the Energy sector, focusing on stocks such as Scorpio Tankers, DHT Holdings, and TechnipFMC.