Wells Fargo Maintained a Buy Rating on LandBridge Company (LB), Kept the PT Unchanged

LandBridge Company LLC (NYSE:LB) is one of the 11 Hot New Stocks to Invest in Now. On June 27, analyst Roger Read of Wells Fargo maintained a Buy rating on LandBridge Company LLC (NYSE:LB) with a price target of $93.

Roger Read recognized that LandBridge Company LLC (NYSE:LB) is known for its distinctive position in the market, with growth prospects that set it apart from peers. The analyst believes that the company’s ability to generate significant free cash flow from surface and subsurface assets is underappreciated by the market. Moreover, its valuation is linked to an Industrial Real Estate Investment Trust, using multiples of adjusted funds from operations. Read believes that this highlights the company’s ability to generate steady cash and investment appeal.

Analyst Read also likes the company’s substantial presence in the Permian Basin, which provides it a competitive edge in water disposal services. The sector is expected to grow alongside increased shale oil production. In addition, LandBridge Company LLC’s (NYSE:LB) extensive land assets position it to benefit from datacenter infrastructure and renewable energy projects.

LandBridge Company LLC (NYSE:LB) owns and actively manages approximately 273,000 surface acres primarily in the Delaware sub-basin of the Permian Basin.

While we acknowledge the potential of LB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.