Deutsche Bank Starts New Fortress Energy (NFE) at Buy, PT $60, 'we believe natural gas will be an important bridge fuel in the coming years'

Deutsche Bank analyst Chris Robertson initiates coverage on New Fortress Energy (NASDAQ: NFE) with a Buy rating and a price target of $60.00.

The analyst comments "We believe there will be increased global demand for liquefied natural gas (LNG) in the coming years, which has potential to create outsized investment opportunities. Recent geopolitical developments notwithstanding, we see a larger backdrop towards energy transition away from traditional, more carbon intensive fuels to cleaner or zero-carbon alternatives. As such, we believe natural gas will be an important bridge fuel in the coming years as combustion of natural gas results in ~50% less carbon emissions that traditional coal combustion. We believe NFE has an attractive EBITDA growth runway over the coming years from its pipeline of new construction FLNG assets in the Gulf of Mexico plus two additional terminals. Based on its current project pipeline, we believe NFE could grow its 2022 full-year adjusted EBITDA of $1.1 Bn to ~$3.5 Bn by 2025 (+235%). We note that our estimate assumes that NFE can secure more of its volumes on period contracts rather than selling into the spot market; This should result in lower EBITDA margins, when comparing against extreme commodity price volatility in today's LNG market, but with greater volumes locked in on duration with more stable and predictable cash flows."

For an analyst ratings summary and ratings history on New Fortress Energy click here. For more ratings news on New Fortress Energy click here.

Shares of New Fortress Energy closed at $28.06 yesterday.

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