Imperial Capital Raises Price Target on Comstock Resources (CRK) Following Reverse Stock Split
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Imperial Capital reiterated an In-Line rating on Comstock Resources (NYSE: CRK), and raised the price target to $3.75 (from $0.75), following the company's 1-for-5 reverse stock split.
Analyst Kim Pacanovsky commented, "We are maintaining our In-Line rating on CRK shares and are adjusting our one-year price target to $3.75 from $0.75 (reflecting the 1-for-5 reverse stock split), about 5% below the recent share price. CRK continues to produce excellent operational results in the Haynesville/Bossier shale with stellar IRRs, but we believe that the use of hedges to secure these strong returns would ensure a baseline level of cash flow and provide greater comfort to investors. We believe the 1-for-5 reverse stock split and 2nd lien secured debt for equity tender offer, announced by the company on 8/1/16, are needed steps in providing CRK with the opportunity to recover from its historical reticence from issuing equity (which led to it using a debt-only model for growth) and reticence to hedging. With liquidity of $117mn and the return of a one-rig program in October 2016, we still await a significant liquidity raising event before becoming more positive on the shares."
Shares of Comstock Resources closed at $3.94 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- Jefferies Cuts Price Target on VCA Antech (WOOF) Following 3Q Miss
- Jefferies Raises Price Target on Planet Fitness (PLNT) Following Solid 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Stock Splits
Related EntitiesImperial Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!