Gulfport Energy stock target raised to $166 by Mizuho, keeps neutral stance
Investing.com | Editor Natashya Angelica
Published Mar 18, 2024 03:42PM ET
On Monday, Gulfport Energy (OTC:GPORQ) Corporation (NYSE:GPOR) received an updated stock price target from Mizuho, increasing it to $166 from the previous $148 while retaining a Neutral rating on the stock. The adjustment comes after the firm updated its net asset value (NAV) model to reflect year-end 2023 reserves and the company's guidance for 2024.
Gulfport Energy has been adapting to lower gas prices by keeping production volumes steady, enhancing efficiency through longer lateral drilling, and concentrating on projects richer in liquids. The company's management has pledged to return any excess cash to shareholders through buybacks, barring any acquisition activities.
The energy company has also expanded its potential with the addition of approximately 50 to 60 new drilling locations in the Marcellus shale, which extends its total inventory to around 12 years. Despite these positive developments, the updated model from Mizuho only forecasts about a 9% upside to the new NAV of $166 per share.
In comparison, peers such as Chesapeake Energy (NYSE:CHK) and Range Resources (NYSE:RRC) are seen to have a more significant upside potential, with their inventories lasting 15 to 20 years, which may offer over 20% upside.
This contrast in inventory duration and upside potential is a contributing factor to Mizuho's decision to maintain a Neutral position on Gulfport Energy shares. The firm acknowledges the company's efforts and strategies but remains on the sidelines for the time being.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.