10 Stocks That Will Go to the Moon According to Reddit

6) Antero Midstream Corporation (NYSE:AM)

Number of hedge fund holders: 28

Antero Midstream Corporation (NYSE:AM) is a midstream company, that owns, operates, and develops midstream energy infrastructure services and production activity in the Appalachian Basin’s Marcellus Shale and Utica Shale located in West Virginia and Ohio.

Natural gas has a very bright future because it is a cleaner commodity than coal and is seeing quicker adoption by fast-growing emerging markets. Courtesy of power generation, adoption by industrial markets, hydrogen applications, and transportation markets, the demand for natural gas is expected to remain elevated for the foreseeable future. Midstream companies tend to benefit from increased natural gas volumes because they offer the infrastructure that is required to process and ship natural gas.

Antero Midstream Corporation (NYSE:AM) should benefit from its majority market share because it operates the midstream assets of Antero Resources. This company is a producer having deep reserves and industry-leading breakeven prices in the Appalachian Basin. After going through the business, it was understood that 100% of the company’s cash generation is backed by fixed-fee contracts, which mitigates the commodity risk.

Also, Antero Midstream Corporation (NYSE:AM) should benefit from its recent ~$70 million strategic acquisition from Summit Midstream Corporation (NYSE:SMC), which also includes assets in the Marcellus Shale. This acquisition is expected to be immediately accretive to free cash flow for Antero Midstream Corporation (NYSE:AM) and should support future development plans.

Morgan Stanley upped their price target on the shares of Antero Midstream Corporation (NYSE:AM) from $15.00 to $16.00, giving it an “Underweight” rating on 27^th August. At the end of 2Q 2024, 28 hedge funds tracked by Insider Monkey held stakes in Antero Midstream Corporation (NYSE:AM).