Barclays has reduced its rating on Net Power (NPWR, Financial) from Equal Weight to Underweight, adjusting its price target to $2 from a previous $3. The decision comes as the firm highlights significant challenges posed by rising tariffs and inflation, which could impede the company's cost-reduction initiatives.
These economic pressures are seen as substantial barriers for Net Power, particularly in light of the company's ambitious plans to mitigate expenses. The downgrade follows a period where the company faced a substantial increase in capital expenditures for its inaugural utility-scale project. This escalation, reported in the last quarter, led to a negative market reaction.
According to Barclays, the current economic environment could hinder Net Power's ability to effectively manage these increased costs, making financial recovery more complex.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for NET Power Inc (NPWR, Financial) is $8.00 with a high estimate of $17.00 and a low estimate of $3.00. The average target implies an upside of 308.16% from the current price of $1.96. More detailed estimate data can be found on the NET Power Inc (NPWR) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, NET Power Inc's (NPWR, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
