Opinions
The Panic-Proof Portfolio (Stockchase Research)
Gulfport Energy Corporation
GPOR-N
TOP PICK
May 14, 2024
Stock price when the opinion was issued
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We reiterate GPOR as a TOP PICK. Management wisely throttled back capital spending in the Marcellus region during the lower natural gas price cycle. This has allowed the company to see rising cash reserves as debt is aggressively retired and shares bought back. It trades at 11x earnings, 1.3x book value and supports a robust 55% ROE. We recommend trailing up the stop (from $125) to $137, looking to achieve $196 -- upside potential of 25%. Yield 0%
(Analysts’ price target is $196.50)We again reiterate GPOR, a low cost producer in the Utica and Marcellus region, as a TOP PICK. Market analysts appreciate the 55% ROE and the net income growth of over 50% over the past five years. It trades at 10x earnings and 1.3x book value. We like that cash reserves are growing, while debt is aggressively retired and shares bought back. We recommend trailing up the stop (from $137) to $147, looking to achieve $196 -- upside potential of 22%. Yield 0%
(Analysts’ price target is $196.17)Our PAST TOP PICK with GPOR has triggered its stop at $147. To remain disciplined, we recommend covering the position at this time. Combined with our previous recommendations, this will result in a net investment loss of 6%
GPOR is actively producing natural gas from the highly prolific Utica and Marcellus basins. Despite lower commodity values, the company is still building cash reserves, allowing it to retire debt and buy back shares. The company is wisely deferring some capital projects at the moment, but still expects to hit productivity targets this year. We recommend setting a stop loss at $125, looking to achieve $195 -- upside potential of 29%. Yield 0%
(Analysts’ price target is $195.33)