Habib Ur Rehman
2 min read
In This Article:
KeyBanc Capital Markets raised its price target on Expand Energy (NASDAQ:EXE) from $130 to $135 on June 13 and kept the Overweight rating in place. The move comes as the firm's analyst points to what they call a “cash return inflection point” for the company. It's the shift that, according to the analyst, could reframe how the market values the stock.
The analyst described marketing as a critical driver for rerating potential, especially as Expand continues to lean into its tech-powered E&S platform targeting small accounts.
An industrial facility emitting natural gas from large pipes, with workers in the foreground.
The firm’s bullish stance is tied to expectations for steady, mid-teens return on equity. None of that is theoretical, with the analyst holding firm on EPS estimates of $1.65 for 2025 and $2.05 for 2026, and now penciling in $2.40 for 2027. Those numbers assume a relatively healthy casualty market and conservative underwriting on new losses.
KeyBanc also pointed to Expand’s lack of exposure to pre-2020 reserve issues, a problem that still hangs over parts of the industry, as a strength that could help drive the stock higher over the next year.
Last month we shared Bernstein's latest views on EXE stock.
While we acknowledge the potential of EXE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None.
