Siebert Williams Shank & Co analyst Gabriele Sorbara maintained a Buy rating on Infinity Natural Resources, Inc. Class A today and set a price target of $18.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors influencing Infinity Natural Resources, Inc. Class A. The recent acquisition of Ohio Utica Shale assets from Antero Resources is a significant move for INR, marking its largest transaction to date. By partnering with Northern Oil and Gas, Inc., INR effectively manages the deal size and balance-sheet risk, allowing it to grow at a manageable pace while maintaining a strong financial position with a projected sub-1.0x net-debt/EBITDA by the end of 2027.
Additionally, the acquisition adds substantial acreage and development opportunities across oil and gas windows, enhancing INR’s asset base. The vertical integration benefits from the midstream assets, including gathering and water lines, are expected to reduce operating costs and improve cash margins. Furthermore, INR’s valuation metrics, such as EV/EBITDA, are below its peers, indicating potential for growth and value realization. These strategic moves align with INR’s business strategy and are anticipated to resonate well with investors, supporting the Buy rating.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $18.00 price target.