Cautious Outlook on Excelerate Energy: Uncertain Growth Plans and Financial Commitments Justify Sell Rating

Devin McDermott, an analyst from Morgan Stanley, maintained the Sell rating on Excelerate Energy, Inc. Class A. The associated price target is $28.00.

Devin McDermott has given his Sell rating due to a combination of factors related to Excelerate Energy’s recent performance and future outlook. Despite reporting an EBITDA that exceeded expectations, the company’s growth plans in the Caribbean, particularly with the Jamaica assets, lack detailed specifics, which introduces uncertainty. The management’s target of generating additional EBITDA by 2030 is ambitious but not yet substantiated with concrete plans.
Additionally, the increased capital expenditure for fleet expansion and maintenance, including the conversion of an LNG carrier to an FSRU, suggests significant financial commitments that could impact future profitability. While the company’s strategic moves indicate potential growth, the current financial implications and lack of detailed execution plans contribute to a cautious outlook, justifying the Sell rating.

EE’s price has also changed moderately for the past six months – from $30.520 to $23.810, which is a -21.99% drop .