In a report released today, Michael Gaugler from Janney Montgomery downgraded LandBridge Company LLC Class A to a Hold, with a price target of $74.00.
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Michael Gaugler has given his Hold rating due to a combination of factors related to the valuation of LandBridge Company LLC. Despite the company’s strong financial performance in the third quarter of 2025, where revenues exceeded expectations and adjusted EBITDA showed significant year-over-year growth, the stock price has surged beyond the revised fair value estimate of $74. This increase in stock price, reaching 52-week highs, has led to the perception that the valuation is currently stretched.
Furthermore, while the company’s business model and earnings trajectory remain positive, supported by a strong balance sheet and improving cash flow, the current market conditions and valuation metrics suggest a more cautious approach. The introduction of 2027 forecasts, using a valuation metric based on 25x EV/EBITDA, aligns with the fair value of $74. Given that the shares are trading above this level, Gaugler has adjusted the rating from Buy to Neutral, reflecting a balanced outlook on the stock’s potential.
Gaugler covers the Utilities sector, focusing on stocks such as Essential Utilities, Eversource Energy, and Algonquin Power & Utilities. According to TipRanks, Gaugler has an average return of 2.0% and a 61.16% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $55.00 price target.