UBS analyst Peyton Dorne has started coverage of Gulfport Energy (GPOR, Financial) with a Buy rating, setting a price target of $215. This assessment comes as Gulfport Energy's stock has lagged behind its peers by 10% since the beginning of the year, offering what UBS considers a favorable risk/reward scenario.
The bank highlights Gulfport Energy's commitment to enhance shareholder value by planning to distribute nearly all its free cash flow from the fiscal year 2025 back to investors. Furthermore, the company is expected to increase share buybacks and focus more on liquids drilling, which is anticipated to boost profit margins by 2026. These strategic moves are aimed at reducing the current valuation gap for the stock.
