CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $2 to $31, reflecting a combination of our DCF and relative valuation models. On a relative basis, we apply a 4.0x multiple of enterprise value to projected 2027 EBITDA, slightly below peers, but we think a discounted multiple is reasonable, as we see a narrower surplus of operating cash flow to handle capex requirements than do most peers. This approach yields a value of $26 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 4% per year, terminal growth of 2%, discounted at a WACC of 6.1%, yields intrinsic value of $37 per share. We lift our 2026 EPS estimate by $2.56 to $3.89 but lower 2027's by $0.18 to $1.85. We see possible risk in 2027 from a commodity price downturn, which could crimp growth in capex spending, or growth in returns to shareholders. Our estimates for 2027 are a fair bit lower than consensus, which has less to do with company-specific factors, and more to do with our take on the macroeconomic view of crude oil prices.