Bank of America Securities analyst Noah Hungness reiterated a Buy rating on Gulfport Energy (GPOR – Research Report) yesterday and set a price target of $224.00.
Noah Hungness has given his Buy rating due to a combination of factors that highlight Gulfport Energy’s strong financial position and operational efficiency. The company is expected to generate significant free cash flow, estimated at $567 million this year, which provides the capacity to repurchase 16% of its outstanding shares. This robust free cash flow yield is seen as a key driver for potentially rerating the stock higher.
Moreover, Gulfport Energy’s operational improvements, such as reduced drilling and completion costs and increased drilling efficiency, further support the positive outlook. Despite a slight reduction in inventory estimates, the impact is partially mitigated by higher natural gas liquid realizations and lower costs in the Utica region. These factors, combined with a durable free cash flow capacity that could last over a decade, underpin the Buy rating and suggest a favorable long-term investment opportunity.
In another report released on February 28, J.P. Morgan also maintained a Buy rating on the stock with a $216.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GPOR in relation to earlier this year.