Excelerate Energy Lags Peers Amid Risks Of Operating In Developing Countries: Analyst Downgrades

Core Viewpoint - JP Morgan analyst Jeremy Tonet downgraded Excelerate Energy, Inc from Neutral to Underweight while raising the price target from $22 to $31, citing flat EBITDA expectations from 2023 to 2025 despite growth opportunities mentioned at the IPO [1][2]. Group 1: Financial Performance - Excelerate Energy's EBITDA is expected to remain flat from 2023 to 2025, indicating a lack of growth despite previous expectations [1]. - The company experienced a significant outperformance in 2024, achieving a 97% total shareholder return compared to the AMNA index's 44% [2]. Group 2: Growth Opportunities and Risks - The anticipated delivery of FSRU in 2026 is expected to boost EBITDA, but growth from the IPO has been slow to materialize, leading to a lagging track record compared to peers [2]. - The analyst highlights risks associated with operating in developing countries, including challenges related to contract law and legal enforceability [3]. Group 3: Market Conditions - With ongoing reforms in Bangladesh and a caretaker government in place, the risks of investing in a global company like Excelerate Energy are considered higher compared to a U.S.-focused midstream company [4]. - As of the latest check, EE shares are trading lower by 6.78% to $29.55 [4].