A Fresh Look at Gulfport Energy’s (GPOR) Valuation After Jefferies’ Upbeat Initiation and Analyst Optimism

Gulfport Energy (GPOR) shares got a lift after Jefferies launched coverage with a positive rating. This sparked interest in the company’s focus on cost efficiency, inventory strategy, and returns for shareholders.

See our latest analysis for Gulfport Energy.

This upbeat analyst call caught Gulfport just as investor optimism was picking up, capping off a steady run. While the share price return over the past 90 days stands at 10.7%, the one-year total shareholder return is even more compelling at nearly 30%, which shows growing confidence in Gulfport’s outlook.

If you’re curious to see what other energy and resource stocks are gaining momentum, now’s the perfect moment to discover fast growing stocks with high insider ownership

But with shares up nearly 11% over the past quarter and trading at a notable discount to analyst targets, the real question is whether value remains or if future growth is already fully reflected in the price.

Most Popular Narrative: 13.6% Undervalued

Gulfport Energy's most widely followed narrative points to a fair value of $216 per share, indicating notable headroom from the last close at $186.67. This narrative is gaining attention as the company’s operational momentum and capital allocation strategies intersect with evolving market conditions.

Gulfport's direct access to premium Gulf Coast markets, exposure to the LNG export corridor, and ongoing negotiations to supply emerging large-scale power projects (driven by AI/data center growth and US/EU LNG infrastructure buildout) position the company to benefit from rising natural gas demand. This may translate into improved realized prices, cash flows, and long-term revenues.

Read the complete narrative.

Want to know what’s driving this bullish outlook? The calculations behind the fair value rely on a future earnings leap, double-digit revenue growth, and sharply rising margins. See what bold projections analysts are making and which single financial lever truly separates Gulfport from the rest of the industry.

Result: Fair Value of $216 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in natural gas prices or setbacks in Gulfport’s shift toward liquids-rich assets could diminish the current bullish outlook.

Find out about the key risks to this Gulfport Energy narrative.

Another View: SWS DCF Model Suggests Deeper Value

While the fair value narrative hinges on analyst forecasts and price targets, our SWS DCF model takes a detailed look at future cash flows. According to this method, Gulfport shares are trading at a price far below what long-term fundamentals suggest. This points to a potential undervaluation that may be even deeper than the analyst consensus. Could the market be overlooking something, or is this just a case of cautious optimism?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Gulfport Energy Narrative

If you see things differently or want a fresh take, you can dive into the numbers and build your own analysis in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Gulfport Energy.

Looking for More Investment Ideas?

Smart investors stay ahead by tapping into opportunities before they hit the mainstream. Don’t let the next big move pass you by. Check out these curated picks from Simply Wall Street to fuel your strategy and enhance your returns:

• Pinpoint emerging tech with these 27 AI penny stocks driving AI innovation in sectors from automation to personalized healthcare.
• Capture game-changing dividends by adding income leaders from these 17 dividend stocks with yields > 3% to strengthen your portfolio’s cash flow.
• Seize the chance to invest early in tomorrow’s standout performers with these 3559 penny stocks with strong financials backed by strong financials.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com