Strategic Asset Sale and Growth Focus Drive Buy Rating for New Fortress Energy

New Fortress Energy (NFE – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Gregory Lewis from BTIG maintained a Buy rating on the stock and has a $8.00 price target.

Gregory Lewis has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for New Fortress Energy. Despite a significant drop in stock value following disappointing earnings, the sale of the Jamaica assets provides a crucial liquidity boost, allowing the company to focus on refinancing its debt and addressing its 2026 notes. This strategic move is expected to improve the company’s financial flexibility, as the proceeds from the sale can be used to pay down existing debt and strengthen the balance sheet.
Additionally, the company’s focus on high-growth areas such as Brazil, Puerto Rico, and Nicaragua, along with the potential for significant capacity expansion in Brazil, positions it well for future growth. The management’s guidance for a substantial increase in EBITDA by FY25, despite being below consensus, indicates a positive outlook. These factors, combined with the strategic recycling of cash from the Jamaica sale, underpin Lewis’s optimistic Buy rating for New Fortress Energy.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NFE in relation to earlier this year.