Analyst Gabriele Sorbara of Siebert Williams Shank & Co reiterated a Buy rating on Coterra Energy (CTRA – Research Report), boosting the price target to $40.00.
Gabriele Sorbara’s rating is based on Coterra Energy’s strong quarterly performance, which exceeded expectations in both total and oil production while maintaining lower capital expenditures. This achievement is attributed to improved cycle times and robust well performance. The company’s 2025 guidance, which was formalized without surprises, suggests potential production upside with reduced spending, supported by consistent execution in recent quarters.
Additionally, Coterra Energy’s management continues to focus on capital returns, with plans to return over 50% of its free cash flow annually at current strip prices. Sorbara finds Coterra attractive due to its valuation, trading at an EV/EBITDA discount and offering an above-average free cash flow yield, alongside the potential for significant capital returns. Despite slightly lower production guidance for 1Q25, the company’s history of surpassing expectations supports the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $34.00 price target.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTRA in relation to earlier this year.