In a report released yesterday, Devin McDermott from Morgan Stanley maintained a Buy rating on Expand Energy, with a price target of $139.00.
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Devin McDermott’s rating is based on several key factors that highlight Expand Energy’s strong performance and potential for future growth. The company has exceeded its initial synergy targets by approximately 50% following the CHK/SWN merger, demonstrating impressive execution and operational efficiency. This achievement, coupled with a robust marketing strategy focused on optimizing gas sales and reducing cash flow volatility, positions Expand Energy favorably in the market.
Furthermore, the company is on track to realize significant synergies, with expectations to achieve around $500 million in 2025 and $600 million in 2026, surpassing initial projections. Expand Energy’s strategic focus on enhancing its marketing and commercial operations is expected to drive incremental value, while its commitment to capital returns and a strengthening balance sheet further support the Buy rating. The positive outlook for the gas market, along with the company’s ability to capitalize on efficiency gains, reinforces the confidence in its long-term growth prospects.
According to TipRanks, McDermott is a 5-star analyst with an average return of 9.6% and a 58.61% success rate. McDermott covers the Energy sector, focusing on stocks such as Civitas Resources, Chevron, and Comstock Resources.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $136.00 price target.