Coterra Energy (CTRA) PT Lowered to $24 at JPMorgan
JPMorgan analyst Arun Jayaram lowered the price target on Coterra Energy (NYSE: CTRA) to $24.00 (from $28.00) while maintaining a Overweight rating.
The analyst comments "After updating our model, we now forecast 109 MBo/d of oil volumes and 650 MBoe/d of total volumes in 4Q under $433 MM capex, resulting in $260 MM of FCF in 4Q24. For FY24, we estimate $1.11 B of FCF based on $75.84 per bbl and $2.18 per Mcf, which compares to CTRA’s guidance of ~$1.1 B of FCF at $75.58 per bbl and $2.22 per Mcf. In 2025, we estimate 113 MBo/d of oil volumes and 688 MBoe/d of total volumes with $1.88 B of capex, driving $1.28 B of FCF at a $66/$3.12 deck (~7.8% yield). After updating our model for 3Q24 results and the updated guide, we reiterate our Overweight rating and reduce our Dec-25 PT to $24 (from $28), which reflects the retrenchment in strip pricing since our last update as well as a decline in the JPM longer-term price deck."