Analyst Julien Dumoulin Smith of Jefferies maintained a Buy rating on XPLR Infrastructure (XIFR – Research Report), reducing the price target to $12.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that suggest potential upside for XPLR Infrastructure. Despite the recent sell-off following the fourth-quarter results, which saw the stock price drop significantly, Dumoulin Smith believes the market has overreacted. The company’s current trading price under $9 per share does not reflect the intrinsic value of its portfolio, which he estimates to have a potential upside to $12 per share, representing a 36% increase.
While the lack of EBITDA growth through 2026 and the full dividend cut are concerning, Dumoulin Smith highlights the company’s strategic focus on addressing its complex capital structure, particularly the upcoming CEPF buyouts. The management’s plan to refinance and raise new debt, despite higher interest expenses, aims to streamline the capital structure and position the company for future opportunities. Additionally, the strong M&A appetite for renewable portfolios could unlock further value, making XPLR Infrastructure an attractive investment despite the current challenges.
According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 2.9% and a 53.96% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Ameren, and Nisource.