UBS reduces Gulfport Energy price target on weaker gas outlook

UBS has adjusted its outlook on Gulfport Energy, lowering its price target from $223 to $218 while keeping a Buy rating. The change reflects a revised 2027 production forecast based on a more conservative natural gas price scenario. The company's shares have dropped 24% year-to-date in 2026, including an 11% decline in the third quarter. Currently trading at $155.97, the stock is just 5% above its 52-week low of $149.18, underscoring broader challenges facing natural gas producers.

UBS noted that Gulfport Energy's stock decline has been partly driven by lower near-term gas price expectations. Despite this, the firm praised the company's consistent execution and highlighted its inventory growth as a positive. UBS also sees potential for operational improvements under new leadership and identifies in-basin demand growth as a medium-term catalyst. The stock's low P/E ratio of 6.06 and its placement on InvestingPro's Most Undervalued list suggest it may be an attractive opportunity for investors.

In other recent developments, Gulfport Energy reported mixed second-quarter 2026 earnings. While adjusted earnings per share of $3.91 missed analyst estimates of $4.08, revenue of $323.23 million surpassed forecasts of $305.65 million. Jefferies downgraded the stock from Buy to Hold, citing concerns over natural gas price risks due to potential warm winter conditions and increased associated gas production. The firm also reduced its price target from $239 to $180. UBS, however, maintained its Buy rating with a price target of $223, pointing to rising Appalachia power generation as a significant demand driver for natural gas.