KeyBanc has revised its price target for Infinity Natural Resources (INR, Financial), reducing it from $26 to $24 while maintaining an Overweight rating for the stock. This adjustment comes as the firm updates its first-quarter estimates in advance of the upcoming earnings season.
The financial institution has made adjustments to its commodity price forecasts, lowering its expectations for oil while raising those for natural gas. KeyBanc cites current pressures on oil prices, attributing them to pessimistic outlooks regarding OPEC+ growth, U.S. oil growth, and concerns over a potential global recession. Despite these challenges, the firm continues to hold a more optimistic view of future oil prices compared to current NYMEX WTI futures.
On the natural gas front, KeyBanc notes that unexpected weather conditions and the commencement of new LNG export projects have contributed to market stabilization. Though there is some concern over persistent production in the Lower 48 states, the firm believes that a slowdown in oil production could result in a corresponding decrease in associated gas output.
