Kalei Akamine, an analyst from Bank of America Securities, maintained the Buy rating on Coterra Energy. The associated price target remains the same with $32.00.
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Kalei Akamine has given his Buy rating due to a combination of factors that highlight Coterra Energy’s strong financial and operational performance. The company’s adjusted EBITDA was slightly below expectations, but its free cash flow exceeded forecasts due to lower capital expenditures. This financial strength allowed Coterra to prioritize debt reduction and resume share buybacks, indicating a solid balance sheet and shareholder-friendly actions.
Coterra’s operational efficiency is also a key factor in the Buy rating. The company has demonstrated strong oil and gas production, meeting or exceeding guidance levels. Additionally, Coterra expects a reduction in drilling and completion costs in 2026, along with an increase in EBITDA margins, driven by more efficient operations and increased revenue per barrel. These improvements, combined with a strategic focus on maintaining a low reinvestment rate, position Coterra as a compelling investment opportunity within the large-cap oil and gas sector.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $33.00 price target.