Siebert Williams Shank & Co analyst Gabriele Sorbara has reiterated their bullish stance on CIVI stock, giving a Buy rating today.
Gabriele Sorbara has given his Buy rating due to a combination of factors, despite Civitas Resources’ recent underwhelming quarterly results and guidance. The company reported a lower-than-expected oil production forecast for 2025, which was below both Sorbara’s and the market’s estimates. However, the strategic acquisition in the Midland Basin, which extends the company’s inventory at a reasonable cost, is seen as a positive move.
Moreover, Civitas Resources is focusing on reducing its debt, aiming for a significant reduction by the end of 2025. The company’s valuation remains attractive, with a strong free cash flow yield, even after accounting for potential negative revisions. Sorbara maintains a Buy rating based on these valuation metrics, suggesting that the long-term potential outweighs the short-term challenges the company faces.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $71.00 price target.