Update shared on13 Oct 2025
Fair value Increased 2.62%Analysts have raised their price target for LandBridge from $69.43 to $71.25 per share. They cite incremental improvements in revenue growth and profit margin forecasts as key factors supporting this upward revision.
What's in the News
- LandBridge agreed to acquire approximately 37,500 acres across four Texas counties from 1918 Ranch & Royalty, LLC. The transaction is expected to close in the fourth quarter of 2025. The acquired acreage will expand LandBridge's access to high-quality pore space and support additional water handling infrastructure in the Delaware Basin (Key Developments).
- The company entered into a strategic agreement with NRG Energy Inc. for a potential data center site in Reeves County, Texas. Plans include a possible 1,100 MW natural gas power generation facility, pending a secured power purchase agreement. Operations could potentially begin by the end of 2029 (Key Developments).
- LandBridge executed a 10-year agreement with Devon Energy Corp. to provide 300,000 barrels per day of pore space capacity in the New Mexico Delaware Basin, commencing in the second quarter of 2027. Devon has committed to deliver a minimum of 175,000 barrels per day of produced water under the deal (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased from $69.43 to $71.25 per share, reflecting improved outlooks.
- Discount Rate rose slightly from 8.52% to 8.64%.
- Revenue Growth projected rate climbed marginally from 27.15% to 27.53%.
- Net Profit Margin improved from 57.25% to 58.55%.
- Future P/E dropped significantly from 44.81x to 14.90x, suggesting a more attractive valuation.
Disclaimer
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