Kalei Akamine, an analyst from Bank of America Securities, maintained the Buy rating on Comstock Resources (CRK – Research Report). The associated price target remains the same with $25.00.
Kalei Akamine has given his Buy rating due to a combination of factors that highlight Comstock Resources’ promising prospects. The successful initial production from the Olajuwon #1H well in Freestone County, with a rate of 41 mmcfd, suggests a productive reservoir in the Western Haynesville area. This success, coupled with consistent drilling costs, indicates the potential for repeatable and profitable operations in this region.
Furthermore, Comstock’s financial performance has shown strength, with adjusted EPS surpassing expectations and cash flow aligning with forecasts. The company’s strategic decision not to add hedges in the first quarter, while maintaining significant hedging for future years, reflects a balanced approach to risk management. Additionally, the collaboration with BKV on carbon capture initiatives positions Comstock to offer lower carbon natural gas, potentially appealing to industrial clients. These factors, along with the company’s ability to stay within leverage covenants despite market fluctuations, support the optimistic outlook reflected in the Buy rating.
Akamine covers the Energy sector, focusing on stocks such as CNX Resources, Comstock Resources, and Devon Energy. According to TipRanks, Akamine has an average return of -0.8% and a 40.00% success rate on recommended stocks.