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LB: Expanded Texas Acreage And Data Center Plan Will Drive Future Upside

Sunbelt Urbanization And Permian Expansion Will Create Future Value

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LB
AnalystConsensusTarget
Not Invested
Published 29 Jun 2025

Update shared on 05 Dec 2025

Fair value Increased 2.05%
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AnalystConsensusTarget's Fair Value
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1Y
-11.6%
7D
-9.1%

Analysts have nudged their price target on LandBridge higher from 73 dollars to 74.50 dollars, citing slightly faster expected revenue growth, modestly stronger profit margins, and a marginally lower future P E multiple. Together, these factors support a higher fair value despite a small uptick in the discount rate.

What's in the News

  • Filed a follow-on equity offering of approximately 186.35 million dollars for 2,500,000 Class A common shares at a price range of 74.54 dollars (Key Developments)
  • Completed a follow-on equity offering totaling 177.5 million dollars, issuing 2,500,000 Class A common shares at 71 dollars per share (Key Developments)
  • Agreed to acquire roughly 37,500 acres across four Texas counties, expanding access to high quality pore space and supporting additional produced water handling infrastructure in the Delaware Basin (Key Developments)
  • Entered a strategic agreement with NRG Energy for a potential 1,100 MW natural gas powered data center site in Reeves County, Texas, targeting possible in service by year end 2029 (Key Developments)

Valuation Changes

  • Fair Value Estimate increased slightly from 73 dollars to 74.50 dollars per share, reflecting modestly improved fundamentals.
  • Discount Rate increased slightly from 8.79 percent to 8.92 percent, indicating a marginally higher required return.
  • Revenue Growth edged up from about 24.7 percent to approximately 25.7 percent, suggesting slightly stronger top line expectations.
  • Net Profit Margin rose modestly from roughly 76.9 percent to about 78.5 percent, implying improved operating leverage or cost efficiency.
  • Future P E declined slightly from about 10.93 times to roughly 10.70 times, supporting a higher valuation despite the higher discount rate.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.