Canaccord Genuity Upgrades Comstock Resources (CRK) to Buy; Strong Q1 Execution
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Price: $14.06 +3.53%
Rating Summary:
9 Buy, 16 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 16 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Canaccord Genuity upgraded Comstock Resources (NYSE: CRK) from Hold to Buy. PT increased from $31 to $40.
Canaccord analyst says, "We are increasing our target price to $40 per share attributable to ~10% higher capital spending, a greater weighting toward the Eagle Ford Shale, lower operating expense and better liquids price realizations. Our revised target implies 40%+ equity value upside, which merits raising our rating to BUY. We laud Comstock’s transition toward higher-margin liquids development in the Eagle Ford Shale, where the company’s latest results suggest improved well performance relative to initial tests. Notably, our ’11 production expectation is at the low end of upwardly revised guidance (92-96 Bcfe), suggesting room for upside should execution outperformance continue. On relative metrics, CRK trades at a ~20% discount to the sector, though has 1.5x the cash flow per share growth (’11-’13E CAGR)."
For more ratings news on Comstock Resources click here and for the rating history of Comstock Resources click here.
Shares of Comstock Resources closed at $28.12 yesterday.
Canaccord analyst says, "We are increasing our target price to $40 per share attributable to ~10% higher capital spending, a greater weighting toward the Eagle Ford Shale, lower operating expense and better liquids price realizations. Our revised target implies 40%+ equity value upside, which merits raising our rating to BUY. We laud Comstock’s transition toward higher-margin liquids development in the Eagle Ford Shale, where the company’s latest results suggest improved well performance relative to initial tests. Notably, our ’11 production expectation is at the low end of upwardly revised guidance (92-96 Bcfe), suggesting room for upside should execution outperformance continue. On relative metrics, CRK trades at a ~20% discount to the sector, though has 1.5x the cash flow per share growth (’11-’13E CAGR)."
For more ratings news on Comstock Resources click here and for the rating history of Comstock Resources click here.
Shares of Comstock Resources closed at $28.12 yesterday.
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