Morgan Stanley analyst Devin McDermott maintained a Hold rating on New Fortress Energy (NFE – Research Report) today and set a price target of $14.00.
Devin McDermott has given his Hold rating due to a combination of factors impacting New Fortress Energy’s outlook. The company reported a strong fourth quarter with EBITDA surpassing expectations, primarily due to spot sales of surplus LNG volumes. However, the guidance for 2025 was slightly reduced to $1.0 billion, down from $1.3 billion, as it now excludes anticipated FEMA payments, although a payment is still expected later in the year.
Additionally, while NFE extended its contract in Puerto Rico and restructured its agreement with Genera for a one-time payment, these developments did not significantly alter the company’s financial outlook. In Brazil, NFE is progressing with its projects, but the completion timelines and outcomes remain uncertain. These mixed signals, with some positive developments and some uncertainties, contribute to the Hold rating as the company’s future performance may not warrant a more aggressive investment stance at this time.