Deutsche Bank Reiterates Hold Rating on New Fortress Energy (NFE)

Deutsche Bank analyst Chris Robertson reiterated a Hold rating and $21.00 price target on New Fortress Energy (NASDAQ: NFE).

The analyst comments "Yesterday, it was reported that New Fortress Energy (NFE) received a non-FTA permit from the Department of Energy (DOE) for LNG produced at the Company's Altamira FLNG 1 liquefaction asset. To note, this is the first new non-FTA permit issued to an LNG export terminal since the DOE paused authorizations earlier this year. The authorization is on a shorter-term basis than previous projects and will only run five years through August 2029. DOE said that it would re-evaluate the export term when it has a more complete record and that re-evaluation would take place no sooner than August 2026. DOE has raised concerns about the arrangement of reexporting US gas as LNG from a Mexico-based facility both on economic and environmental terms but decided to move forward with the five-year approval. As a reminder, a federal district judge in Louisiana blocked a decision by the Biden Administration to pause non-FTA permits in July after sixteen states filed a lawsuit with the US District Court for the Western District of Louisiana to challenge the temporary pause/ban. We believe this is overall a positive for the Company and should allow greater flexibility in selling swing cargo volumes produced from FLNG 1 into the global market without the need to engage in cost-additive cargo swaps. The premise of FLNG 1 was for New Fortress to be able to produce LNG at a price in line with, or below, its current SPA volumes and engaging in cargo swaps would have likely put downward pressure on margins by ~$0.50 - $1.00 per MMbtu. We expect the news will be received positively by the Market today, but expect some market participants may be disappointed by the shorter-term duration of the permit which lasts until August 2029."

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 $12.32 yesterday.

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