California Resources Corp: Strong Financial Performance and Strategic Growth Justify Buy Rating

TD Cowen analyst David Deckelbaum has maintained their bullish stance on CRC stock, giving a Buy rating yesterday.

David Deckelbaum has given his Buy rating due to a combination of factors that highlight California Resources Corp’s strong financial performance and strategic initiatives. The company reported impressive earnings with EBITDAX exceeding expectations by 13%, driven by lower operating costs and capital expenditures that were significantly below market predictions. This financial discipline, coupled with successful debt and share repurchases, underscores CRC’s robust financial management.
Furthermore, CRC’s strategic synergies from the Aera merger have been realized ahead of schedule, with significant cost savings already achieved and more expected. The company’s ability to maintain its FY25 EBITDAX guidance despite challenging commodity price environments, supported by a strong hedging strategy, further reinforces its resilient operational outlook. These factors collectively contribute to Deckelbaum’s confidence in CRC’s potential for future growth, justifying the Buy rating.

In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $46.00 price target.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CRC in relation to earlier this year.