In a report released today, Julien Dumoulin Smith from Jefferies maintained a Buy rating on XPLR Infrastructure (XIFR – Research Report), with a price target of $13.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors including the recent financial maneuvers and strategic asset management by XPLR Infrastructure. Despite a reduction in cash available for distribution (CAFD) and free cash flow before growth (FCFbg) estimates for 2025 and 2026, the company has shown resilience through its updated pricing assumptions and debt management strategies.
Smith acknowledges concerns about the flat EBITDA and declining CAFD, but he points out that the company’s efforts in wind repowerings and strategic recontracting are positive steps towards long-term asset value enhancement. The analyst also highlights the potential for future growth through asset acquisitions and drop-downs, which could bolster the company’s 10GW portfolio. These strategic moves, coupled with a prudent approach to managing debt and pricing, underpin the Buy rating for XPLR Infrastructure’s stock.