LandBridge initiated with a Neutral at Piper Sandler

Piper Sandler initiated coverage of LandBridge with a Neutral rating and $30 price target as the firm likes the future upside potential of commercial development from its 230k surface acres in West Texas, but the current cash flow multiple and NAV give it a full valuation. While the traditional pipeline business is a proven steady business, the real upside comes from commercial development, as highlighted by the data center lease signed with Five Point, which kick-starts this monetization, Piper adds.