Lloyd Byrne, an analyst from Jefferies, maintained the Buy rating on Civitas Resources (CIVI – Research Report). The associated price target remains the same with $73.00.
Lloyd Byrne has given his Buy rating due to a combination of factors that highlight Civitas Resources’ strategic focus and financial performance. The company has demonstrated strong EBITDA results, slightly surpassing expectations, which reflects its operational efficiency and solid financial health. A key element in Byrne’s positive outlook is Civitas Resources’ emphasis on free cash flow (FCF) durability, which is expected to be a priority in 2025, alongside a moderated capital expenditure approach to bolster the balance sheet.
Furthermore, Civitas Resources’ production outlook aligns closely with expectations, with a focus on maintaining capital efficiency and enhancing inventory through strategic acquisitions. The company’s plans for shareholder returns, including debt reduction and dividend commitments, further support the Buy rating. These strategic initiatives, coupled with a disciplined approach to capital allocation and operational improvements, underpin Byrne’s confidence in Civitas Resources’ potential for future growth and value creation.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $68.00 price target.