KeyBanc has revised its price target for Kimbell Royalty Partners (KRP, Financial), lowering it from $20 to $18. Despite this adjustment, the firm maintains an Overweight rating on the stock. This decision comes as KeyBanc updates its market assessments and forecasts ahead of the upcoming earnings season.
In its recent evaluation, KeyBanc adjusted its commodity price forecasts, reducing its outlook for oil prices while raising expectations for natural gas. The firm noted that current oil prices seem to be under undue pressure, influenced by pessimistic scenarios concerning the expansion strategies of OPEC+, the growth of U.S. oil supply, and fears of a global economic downturn. KeyBanc’s oil price forecast remains more optimistic than the prevailing NYMEX WTI futures strip.
For natural gas, the outlook has improved due to unexpected weather patterns and new LNG export projects. The absence of two polar vortexes, which were not anticipated, has contributed to market stabilization. However, KeyBanc maintains some concerns regarding the persistent high levels of production in the Lower 48 states. Yet, it suggests that a slowdown in oil production could lead to a corresponding decrease in associated natural gas output, potentially balancing the market more effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Kimbell Royalty Partners LP (KRP, Financial) is $18.14 with a high estimate of $24.00 and a low estimate of $14.00. The average target implies an upside of 44.56% from the current price of $12.55. More detailed estimate data can be found on the Kimbell Royalty Partners LP (KRP) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Kimbell Royalty Partners LP's (KRP, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kimbell Royalty Partners LP (KRP, Financial) in one year is $13.93, suggesting a upside of 11% from the current price of $12.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kimbell Royalty Partners LP (KRP) Summary page.
