UBS Lowers Gulfport Energy Target Amid Gas Price Concerns

UBS has adjusted its outlook on Gulfport Energy, lowering its price target from $223 to $218 while keeping a Buy rating on the stock. The firm reduced its 2027 production forecast due to a lower price scenario, reflecting broader challenges faced by natural gas producers. Gulfport Energy’s shares have dropped 24% year-to-date in 2026, including an 11% decline in the third quarter. The stock is currently trading at $155.97, just 5% above its 52-week low of $149.18.

UBS noted that falling near-term gas price expectations have contributed to the stock’s decline. However, the firm praised Gulfport Energy’s execution and highlighted the company’s inventory growth as a positive. UBS believes new leadership presents an opportunity to reset operational planning and sees medium-term catalysts in in-basin demand growth, offering a favorable risk-reward opportunity given the stock’s discounted valuation.

Gulfport Energy’s second-quarter 2026 earnings report showed mixed results. The company reported adjusted earnings of $3.91 per share, missing analysts’ expectations of $4.08 per share. However, revenue exceeded forecasts, reaching $323.23 million compared to the anticipated $305.65 million. Jefferies downgraded the stock to Hold from Buy, citing concerns over natural gas price risks due to a potentially warm winter and increased associated gas production, lowering its price target to $180.

Despite the downgrade, UBS maintained its Buy rating with a price target of $223. The firm emphasized rising in-basin Appalachia power generation as a significant demand driver for natural gas, fueled by data center and industrial development needs. The stock’s P/E ratio stands at 6.06, and it is considered undervalued relative to its Fair Value, placing it on InvestingPro’s Most Undervalued list.