Comstock Resources: Sell Rating Maintained Amid Disappointing Q1 Results and Unfavorable Risk/Reward Profile

Gabriele Sorbara, an analyst from Siebert Williams Shank & Co, maintained the Sell rating on Comstock Resources (CRK – Research Report). The associated price target remains the same with $13.00.

Gabriele Sorbara has given his Sell rating due to a combination of factors impacting Comstock Resources. The company’s first-quarter results for 2025 were slightly disappointing, with production, DCFPS, and EBITDA falling short of expectations, alongside a higher-than-anticipated capital outlay. Additionally, the guidance for the second quarter of 2025 was not encouraging, as it indicated increased capital expenditure and lower production than initially expected.
Despite some positive developments, such as successful results from a new well in Freestone County, Sorbara believes these are insufficient to counterbalance the weaker first-quarter results and the lackluster second-quarter guidance. The valuation of Comstock Resources is considered to have surpassed its fundamental value, especially given the current natural gas strip prices, leading to an unfavorable risk/reward profile. Therefore, Sorbara maintains a Sell rating, suggesting that the stock’s price does not align with its underlying financial performance.

Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, Range Resources, and Diamondback. According to TipRanks, Sorbara has an average return of 17.6% and a 51.16% success rate on recommended stocks.

In another report released on April 22, Piper Sandler also maintained a Sell rating on the stock with a $6.00 price target.