Gulfport Energy upgraded at KeyBanc on Trump tailwinds

Investing.com -- KeyBanc Capital Markets raised its price target on Gulfport Energy (OTC:GPORQ) Operating Corp (NYSE:GPOR) to $205 from $165, citing tailwinds from the Trump administration's energy policies and strong natural gas market sentiment.

KeyBanc noted that Gulfport's recent rally, alongside a broader surge in energy equities, is likely to persist as a result of favorable macro conditions for natural gas.

“Despite the recent rally, we see compressed valuations and a best-inbreed 2025 FCF yield, relative to gassy peers,” analyst Tim Rezvan wrote in the note.

Gulfport shares have gained 28% month-to-date, outperforming both the Energy Select Sector SPDR Fund (XOP) and peers in the natural gas sector.

While pointing to its forecast of a 10.6% free cash flow (FCF) yield for the company in 2025, positioning Gulfport a top performer among its natural gas peers, it said that a re-rate can persist.

“we believe we are at the end of the beginning of the re-rate, not the beginning of the end"

KeyBanc, while reiterating its "outperform" (OW) rating on the stock, expected reversal of energy policies under a potential second Trump administration, a strong tailwind for the U.S. natural gas sector.

Analyst says Trump's policies would support U.S. fossil fuels, especially in the development of infrastructure for data centers and the expansion of the U.S. power grid, driving demand for liquefied natural gas (LNG) exports.

Note also highlighted Gulfport’s strong operational execution and consistent well results. The company has been meeting its guidance, with well results in Ohio.