KeyBanc has adjusted its valuation of BKV Corp (NYSE:BKV), raising the price target to $34.00 from $30.00 while leaving its rating on the stock at Overweight. The firm updated its outlook after BKV completed the Power WI acquisition earlier than anticipated and revised its internal forecasts in advance of the company’s fourth quarter 2025 earnings report, which is scheduled for February 25.
BKV shares are trading at $29.58, according to the broker note, about 4% below the company’s 52-week high of $30.83. The stock has outperformed over the past six months, gaining 42.53% in that period.
KeyBanc described its stance as constructive, pointing to expectations for an agreement with a hyperscaler within the year and noting solid execution across BKV’s three business segments. In its analysis, the research team identified an agreement to raise the capacity factor of the Temple complex as the single most important 2026 catalyst within its coverage group.
The increment in the price target reflects updated modeling and revised sum-of-the-parts forecasts implemented by KeyBanc following the acquisition close. The analyst note indicated that the firm aligned its assumptions with recent company commentary and factored in the transaction into its valuation framework.
Corporate activity at BKV has been active. The company increased its ownership stake in its power joint venture to 75% by acquiring half of Banpu Power US Corporation’s interest. The consideration for that purchase included approximately $115.1 million in cash and 5.3 million shares of newly issued BKV common stock. That deal, which received shareholder approval from Banpu Power Public Company Limited, gives BKV majority control of the joint venture that owns the Temple I and Temple II power plants in Texas.
Separately, BKV’s majority stockholder, Banpu North America Corporation, approved an amendment to the company’s 2024 Equity and Incentive Compensation Plan to increase the pool of available shares for grant by 2,500,000 shares. The Board of Directors also authorized a share repurchase program of up to $100 million over the next two years, with repurchases permitted through varied methods, including open market purchases and privately negotiated transactions.
KeyBanc repeated its Overweight rating and emphasized BKV’s prospects in carbon capture, utilization, and storage. The firm indicated that its forecasts were adjusted to align with recent commentary from the company while incorporating the effects of the JV stake increase and the updated capital and share structures.
These developments reflect management actions to expand operational control in power generation, create flexibility around equity compensation, and pursue shareholder-return initiatives through buybacks. Market participants will be watching execution on the Temple complex capacity plans and any progress toward a hyperscaler agreement, both of which KeyBanc marked as meaningful drivers for future valuation.