Gulfport Energy (GPOR) has received a new Buy rating, initiated by William Blair analyst, .
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William Blair has given his Buy rating due to a combination of factors that highlight Gulfport Energy’s strong financial performance and strategic positioning. Gulfport is characterized as a free cash flow powerhouse, with a yield close to 20%, which is largely returned to shareholders through stock buybacks. The company’s operations are adaptable, allowing it to shift focus between Utica natural gas and liquids based on market conditions, which enhances its operational flexibility.
Moreover, Gulfport’s financial outlook is promising, with expectations of doubling its free cash flow year-over-year, driven by high returns from Utica and a low reinvestment rate. The company boasts a robust inventory with over a decade’s worth of Utica locations, supplemented by strategic acquisitions. Gulfport’s minimal debt and high shareholder returns, combined with its potential as an acquisition target, further support the Buy rating. The valuation metrics suggest that Gulfport’s shares are undervalued compared to peers, with a potential upside of 37%, reinforcing the positive outlook.
In another report released on August 20, UBS also maintained a Buy rating on the stock with a $227.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GPOR in relation to earlier this year.