XPLR Infrastructure price target lowered to $12 from $17 at Guggenheim

Guggenheim lowered the firm’s price target on XPLR Infrastructure (NEP) to $12 from $17 and keeps a Neutral rating on the shares. The company reported Q4 results and announced a full strategic and financial revamp that was met with a steep decline in the stock, the analyst tells investors in a research note. The firm says that while it anticipated a major strategic turnaround and a 70% distribution cut, XPLR cut distributions 100% until further notice to focus on equity-free repowering and buyouts. Guggenheim believes the stock decline is not representative of the potential future fundamentals, but a technical reaction to both institutional investors no longer able to own zero-income generation as well as the 50% retail ownership of the float that is “getting flushed out.” It is hard for the firm to see investors stepping into a capital allocation strategy “that does not have a clear path to investor return.”