In a report released today, Benjamin Nolan from Stifel Nicolaus maintained a Buy rating on New Fortress Energy (NFE – Research Report), with a price target of $16.00.
Benjamin Nolan has given his Buy rating due to a combination of factors that suggest potential upside for New Fortress Energy. The company is currently addressing its high leverage by planning to sell its Jamaica business, which is expected to generate significant proceeds and help manage near-term debt maturities. This strategic move could improve liquidity and reduce financial risk, providing a clearer path to future cash flows.
Additionally, despite a recent decline in downstream portfolio volumes, the company has made strategic decisions such as selling an LNG purchasing contract, which has bolstered cash flows. The commissioning of FLNG1 is also expected to enhance production capabilities, contributing positively to the company’s financial outlook. These factors, combined with the company’s efforts to manage its debt obligations, underpin the Buy rating as they present more potential for upside than downside risk.
In another report released on March 3, BTIG also reiterated a Buy rating on the stock with a $15.00 price target.