Update shared on19 Sep 2025
Fair value Decreased 7.27%Analysts revised New Fortress Energy’s price target downward from $5.50 to $5.10 due to concerns over weakening operating performance, increased leverage, and dividend sustainability, despite long-term optimism around LNG growth prospects.
Analyst Commentary
- Bearish analysts cited deteriorating fundamentals and incremental downside risks as justification for lower price targets and ratings downgrades.
- Concerns were raised over weaker-than-expected operating performance impacting near-term earnings visibility.
- Bearish analysts highlighted increased leverage and reduced confidence in the sustainability of dividend payouts.
- Bullish analysts pointed to long-term growth prospects in the LNG and energy infrastructure markets as reasons for a positive outlook.
- The potential for new project developments and international partnerships was seen as a catalyst for future upside by bullish analysts.
What's in the News
- New Fortress Energy finalized a $4B, seven-year LNG supply agreement with Puerto Rico, ending lengthy negotiations and resulting in a nearly 40% surge in share price; the contract will provide up to 75 TBtu of natural gas per year and is pending approval by Puerto Rico's Financial Oversight and Management Board (Bloomberg, company announcement).
- Despite the Puerto Rico deal, New Fortress Energy recently warned of imminent debt covenant violations following disastrous Q2 results and is formally considering bankruptcy as the most likely strategic alternative (company announcement).
- The company received a Nasdaq notice for failing to file its Q2 2025 10-Q on time and must regain compliance or risk delisting from the exchange; the missing filing was previously disclosed (company announcement).
- In July, New Fortress Energy executed a 5-year FSRU service agreement with Egypt’s EGAS, deploying the Energos Winter at the Damietta LNG import terminal alongside its existing vessel Energos Eskimo (company announcement).
- The company was dropped from numerous Russell indices in late June 2025 but was simultaneously added to the Russell 2000 and Russell 2000 Value Indices, reflecting a shift in benchmark inclusion (company announcements).
Valuation Changes
Summary of Valuation Changes for New Fortress Energy
- The Consensus Analyst Price Target has fallen from $5.50 to $5.10.
- The Future P/E for New Fortress Energy has fallen from 4.21x to 3.92x.
- The Net Profit Margin for New Fortress Energy remained effectively unchanged, moving only marginally from 14.88% to 14.82%.
Disclaimer
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