Stifel Upgrades NextDecade Corp. (NEXT) to Buy 'On Attractive Risk Reward'

Stifel analyst Benjamin Nolan upgraded NextDecade Corp. (NASDAQ: NEXT) from Hold to Buy with a price target of $9.00 (from $7.50).

The analyst comments "We are upgrading NEXT shares to Buy from Hold, as following the FID of Rio Grande LNG phase 1 and the subsequent decline in share price, we believe the risk-reward is positively skewed. By our estimate, the undiscounted value to the equity of phase 1 is about $10/share, with upside driven primarily from the potential for expansion with a 4th and 5th train potentially adding around $16/share based on our current assumptions. With shares trading below what we estimate is fair value for phase 1 and no value being priced in for the possibility of expansion, we believe there should be asymmetric upside. We expect the company is likely to add to its phase 2 contract backlog over time which should act as a catalyst to cause the value gap to close. Our $9 target assumes a discounted value for phase 1 and a conservative 25% probability of phase 2."

For an analyst ratings summary and ratings history on NextDecade Corp. click here. For more ratings news on NextDecade Corp. click here.

Shares of NextDecade Corp. closed at $5.53 yesterday.

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