Granite Ridge Resources, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Noah Hungness from Bank of America Securities reiterated a Hold rating on the stock and has a $5.50 price target.
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Noah Hungness has given his Hold rating due to a combination of factors influencing Granite Ridge Resources. The company remains cautious as it enters 2026, with oil prices hovering between $55 and $60 per barrel. While modest growth is expected, it is projected to be less than the levels seen in 2025. In the event of a downturn where crude prices fall into the lower $50s, the company plans to shift to a maintenance program, which would impact its financial leverage.
Additionally, while higher gas prices could lead to increased activity in regions like Haynesville and Appalachia, this would not be sufficient to counterbalance the potential weakness in oil. The company’s growth strategy relies heavily on operator partnerships, which are expected to drive the majority of production growth. Despite exploring new opportunities in regions like the Permian and Canada, these developments are seen as longer-term prospects. Furthermore, potential shifts in drilling activity and elevated operating expenses pose additional risks that contribute to the Hold rating.
In another report released on December 9, TR | OpenAI – 4o also downgraded the stock to a Hold with a $5.50 price target.
Based on the recent corporate insider activity of 48 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 GRNT in relation to earlier this year.