Jefferies Initiates Buy Rating on Excelerate Energy with $39 Price Target

Excelerate Energy's stock rose 4.4% on Thursday after Jefferies initiated coverage with a Buy rating and $39 price target. The firm offers exposure to long-term liquefied natural gas storage and transportation with minimal commodity risk.

Excelerate Energy's (NYSE: EE) stock experienced a notable 4.4% increase on Thursday after Jefferies initiated coverage with a "Buy" rating and a $39 price target. The move by the brokerage firm is based on the company's robust LNG infrastructure and anticipated EBITDA growth, signaling a strong investment case.

Jefferies analysts highlighted Excelerate Energy's unique position to benefit from long-term liquefied natural gas (LNG) demand through its Floating Storage Regasification Unit (FSRU) and regas infrastructure. This infrastructure provides stable contracted cash flows and minimal commodity risk. The analysts also noted the company's strategic moves to expand its asset base and improve integration by developing a new FSRU, securing LNG Sale and Purchase Agreements (SPA), and acquiring New Fortress Energy's Jamaican LNG-to-power assets. These moves are expected to enhance the company's growth prospects, supported by its strong financial position with a current ratio of 3.34x and moderate debt levels.

The Jefferies analysts see the decrease in growth capital expenditures and the anticipated increase in free cash flow as positive factors for the company's future performance. Excelerate Energy's focus on expanding its infrastructure and securing contracts positions it well to capitalize on the growing demand for LNG. The company's efforts to enhance its asset base are seen as a strategic advantage in the evolving energy market.

In other recent news, Excelerate Energy announced its financial results for the first quarter of 2025, surpassing expectations with earnings per share (EPS) of $0.49, significantly higher than the anticipated $0.38. The company also reported revenue of $315.1 million, exceeding forecasts by 51.7%. Excelerate Energy has raised its 2025 adjusted EBITDA guidance to a range between $345 million and $365 million. The company is on track to close a $1 billion acquisition of a fully integrated LNG infrastructure and power platform in Jamaica this quarter, which is expected to be immediately accretive to EPS and enhance operating cash flow. Additionally, Excelerate Energy has secured inaugural credit ratings from Fitch Ratings and S&P Global Ratings, with Fitch assigning a BB rating and S&P a BB+ rating. The company is exploring growth opportunities in the Caribbean and Vietnam markets, indicating a strong pipeline for future expansion.

The Jefferies analysts' Buy rating reflects their confidence in Excelerate Energy's ability to leverage its infrastructure and contracts for future growth and value creation.

References:
[1] https://www.nasdaq.com/articles/jefferies-initiates-coverage-excelerate-energy-ee-buy-recommendation
[2] https://www.investing.com/news/analyst-ratings/jefferies-initiates-buy-rating-on-excelerate-energy-stock-93CH-4082036
[3] https://www.gurufocus.com/news/2911537/excelerate-energy-ee-gains-as-jefferies-issues-buy-rating
[4] https://www.marketbeat.com/instant-alerts/excelerate-energy-nyseee-now-covered-by-jefferies-financial-group-2025-06-05/