New Fortress Energy price target raised to $33 from $32 at BofA

BofA raised the firm’s price target on New Fortress Energy to $33 from $32 on Friday, while keeping a Neutral rating on the shares following the recent guidance reaffirmation. While management still sees EBITDA of $1.6B in 2023 and $2.4B in 2024, the firm notes that disclosures at the end of the company’s latest presentation indicate that expected asset sales of $200M are assumed as part of the 2023 figure. To BofA’s knowledge, this represents a key change to the earnings composition for 2023, as it does not believe that this was contemplated as of the Q2 update. Management has indicated that asset sales of $1B are expected over the next 12 months, though it is unclear to the firm whether any gains are included in 2024 EBITDA guidance. BofA does see asset sales as an attractive way to deleverage while pursuing growth. That said, it does not include any asset sales in its estimates pending clarity from management.