Analyst David Deckelbaum from TD Cowen maintained a Buy rating on Coterra Energy (CTRA – Research Report) and keeping the price target at $33.00.
David Deckelbaum has given his Buy rating due to a combination of factors that highlight Coterra Energy’s strategic adjustments and operational efficiencies. The company demonstrated solid capital efficiency in the first quarter, managing to integrate assets from recent acquisitions effectively. Despite slightly higher costs and minor deviations in production estimates, Coterra’s overall performance remained broadly in line with expectations.
Coterra’s strategic shift in activity, reducing Permian operations while increasing focus on the Marcellus region, is a response to favorable macroeconomic conditions for natural gas. This adjustment is expected to reduce capital expenditures significantly, while maintaining stable oil volume guidance and slightly increasing natural gas volumes. Additionally, Coterra’s cost-effective drilling practices, particularly in the Windham Row development, further support the positive outlook, despite some operational challenges in other areas. These strategic and operational factors collectively underpin the Buy rating.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $35.00 price target.