Siebert Williams Shank & Co analyst Gabriele Sorbara maintained a Hold rating on Expand Energy (EXE – Research Report) today and set a price target of $115.00.
Gabriele Sorbara has given his Hold rating due to a combination of factors influencing Expand Energy’s future performance. Despite the company’s strong fourth-quarter results, Sorbara is cautious about the revised 2025 outlook, which includes a substantial increase in capital expenditure to boost production capacity for 2026. This increase in spending, amounting to $300 million, is expected to result in only a modest production increase, which may not justify the higher costs in the eyes of some investors.
Moreover, while the increased capital expenditure positions Expand Energy to respond quickly to an improved natural gas market, the overall sentiment among investors might be negative due to the overshadowing of positive quarterly results by the revised outlook. Sorbara’s Hold rating reflects concerns about the relative valuation and the potential pushback from investors regarding the 11% increase in capital expenditure for a relatively small production gain. The analyst also notes that the company’s plans to achieve significant synergies in the coming years are positive, but the increased spending remains a point of contention.
According to TipRanks, Sorbara is a 5-star analyst with an average return of 18.4% and a 53.53% success rate. Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, Ovintiv, and EQT.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $96.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com