Analyst Devin McDermott from Morgan Stanley maintained a Buy rating on Expand Energy and keeping the price target at $141.00.
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Devin McDermott has given his Buy rating due to a combination of factors tied to valuation, asset quality, and strategic execution. He highlights that EXE’s shares are trading at a notable discount to comparable gas E&P names, despite a projected 2026 free cash flow yield meaningfully above the sector median at current strip prices, which points to substantial re‑rating potential as conditions normalize.
McDermott also underscores EXE’s strong fundamentals, including a premier Haynesville position with a large share of remaining Tier 1 inventory and materially improved breakevens from recent efficiency gains. In parallel, management’s intensified focus on marketing and commercial initiatives is expected to lift realizations and smooth cash flows over time, while an orderly leadership transition aims to reinforce this strategy and should help narrow the valuation gap as investors gain confidence in the new executive team.
In another report released on April 2, Citi also maintained a Buy rating on the stock with a $125.00 price target.