Capital One upgraded Genesis Energy (GEL) to Overweight from Equalweight with a price target of $15, down from $16. Looking through near-term transitory issues, the free cash flow thesis for Genesis remains, “although admittedly has been reduced and pushed to the right,” the analyst tells investors. A substantial drop in capex is still expected next year, coinciding with material growth in cash flows from ramping offshore volumes and continued strength in the marine segment, says the firm. Based on CapitalOne’s revised forecast, the second half of 2025 is now shaping up to be the point of inflection, adds the firm, which expects the story to “migrate more toward one of capital returns as the year progresses.”
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