Investment Review №336. Choosing a direction

 

Evolution Petroleum Corporation (EPM) is a U.S. oil and gas company deriving 100% of its revenue from domestic operations. All EPM’s producing assets are non-operated interests, meaning that operational decisions—such as capital expenditures and production volume targets—are determined by partner operators. The investment case for EPM is largely tied to the potential for a rise in natural gas prices, driven by increasing U.S. LNG exports. The U.S. Department of Energy estimates LNG exports to grow by 9.5% in 2026, which is expected to put upward pressure on domestic natural gas prices. Additional tailwinds stem from geopolitical risks: Ukrainian strikes on energy infrastructure, U.S. sanctions targeting Russia’s oil and gas sector, the risk of a complete blockade of sanctioned tankers in Venezuela, and sanctions on Iran. These factors may contribute to a reduction in global oil supply. Seasonality is another positive factor; winter typically sees a spike in natural gas demand and prices in the Northern Hemisphere as the heating season begins, which also leads to increased demand for oil products. Freedom Broker has set a 12-month price target of $5.30 for EPM shares.

 

Carter Bankshares, Inc. (CARE) is a regional bank focused on providing financial services in Virginia and North Carolina. The company’s investment appeal is driven by robust organic lending growth (+7.8% p.a. for the first nine months of 2025) and favorable demographics in the regions of operations supporting demand for real estate and lending products. CARE’s distinctive Lifetime Free Checking offering helps maintain a stable deposit base, with non-interest-bearing deposits accounting for 15% of total assets, which optimizes funding costs. The bank’s recent designation as a Financial Holding Company (FHC) and strategic expansion into South Carolina position CARE for further revenue diversification and geographic growth. Net interest margin (NIM) increased to 2.80% as at the end of Q3 2025, and projected revenue growth for 2025 and 2026 stands at 14.5% and 18.3%, respectively. While the reported non-performing loan (NPL) ratio is a high 6.74%, 88.4% of this is attributable to a single commercial loan; excluding this concentration, the NPL ratio would be just 0.78%. Freedom Broker’s 12-month price target for CARE stock is $23.

 

Gambling.com Group Limited (GAMB) is a multi-channel performance marketing company serving as a leading customer acquisition platform for the online gambling industry. The company’s core business builds and monetizes audiences for online casino and sports betting operators through a portfolio of more than 50 premium domain websites. GAMB offers direct exposure to the U.S. online gambling legalization trend, thanks to its capital-light, high-margin model, which is well positioned to benefit as new states become open to online betting and operators increase marketing spend. Besides, the proprietary technology platform offers superior business economics, with the integrated in-house IT solution enabling rapid expansion into new markets and facilitating the efficient monetization of data-driven traffic. A key near-term catalyst is the recent launch of online sports betting in Missouri. The company’s initial market share, web traffic, and new depositing customer (NDC) figures during the launch are critical metrics for forecasting FY 2026 revenues and are closely monitored by investors. Freedom Broker’s 12-month price target for GAMB shares is $8.50.

 

Butterfly Network, Inc. (BFLY) is a medical technology company specializing in portable semiconductors for ultrasound devices within the digital health space. The company has recently seen strong sales growth in its iQ3 transducer line and an expansion in its enterprise segment, thanks to the introduction of AI-powered tools and software subscriptions. In 2026, Butterfly plans to launch its fourth-generation iQ4 platform, featuring a chip that offers doubled mechanical impedance for imaging performance. Simultaneously, the development of the fifth generation iQ X chip is underway, boasting 20 times greater signal processing power. Butterfly is strategically expanding beyond portable devices, with a fixed radiology system for hospitals slated for 2026 and the development of wearable devices for remote patient monitoring. The company is also optimizing operating costs by leveraging hardware and software synergies. Expected Q4 2025 revenue growth of 17% underscores the success of subscription-based AI services. The accelerating commercialization of iQ3 devices and ecosystem expansion due to new form factors provide a strong foundation for scalable growth. Freedom Broker’s 12-month price target for BFLY stock is $5.