Investing com– KeyBanc Capital Markets began safety of BKVCorp (NYSE: BKV) with an “overweight” rating and established a value goal of $23 per share.
The consultants see BKV as a particular gamer within the energy and carbon seize markets, particularly for its consider fuel manufacturing and carbon sequestration.
BKV’s procedures fixate its properties within the Barnett and Marcellus Shale, along with a 50% threat in an influence technology joint endeavor in Texas.
BKV attracts consideration due to its twin firm model, which includes standard energy manufacturing with its broadening carbon seize and sequestration (CCUS) sector.
This CCUS capability is presently useful, with the agency proactively withdrawing carbon dioxide and going for an increase in its sequestration functionality by 2031.
KeyBanc’s consultants needless to say BKV’s methods straighten with extra complete fads resembling growing want for dissolved fuel and boosted charge of curiosity in carbon-neutral energy choices, particularly as industrial prospects and energy facilities search means to fulfill net-zero targets.
The consultants assume that BKV’s different profile of fuel manufacturing, energy technology, and CCUS gives an enticing growth story. While the agency remains to be very early in its CCUS initiatives, having really caught round 0.2 million statistics heaps per 12 months of carbon dioxide, it intends to scale this to over 16 mmtpa by 2031.
To fund this growth, which is predicted to set you again $1.55 billion, BKV is proactively searching for a joint endeavor companion, with doable information anticipated by the top of 2024.
The consultants flag that such a collaboration may give a stable appraisal pen for the CCUS firm, a necessary growth chauffeur that {the marketplace} presently undervalues.
Additionally, BKV’s energy sector, together with 2 gas-fired crops in Texas, is anticipated to provide sturdy revenues from 2025 ahead, gaining from doable info facility growths within the space.
These facilities will be vital in driving larger software costs for BKV’s nuclear energy plant, which presently run at a sub-60% functionality variable.
Battery space for storing jobs, presently current, can moreover increase these properties’ revenues capability all through durations of extreme energy want.
Despite BKV’s stable positioning, the consultants flag some threats, particularly in its CCUS sector, which relies upon tremendously on future job progress and regulative authorizations.
Nonetheless, they keep optimistic regarding BKV’s functionality to revenue from increasing market want for cleaner energy choices and see upside doable within the provide, sustained by the agency’s efforts in carbon seize and energy technology.
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