Crescent Energy: Improved Asset Quality and Valuation Upside, But 2026 Transition and Macro Uncertainty Support Market Perform Hold at $10 Target

Crescent Energy Company Class A (CRGY) has received a new Hold rating, initiated by BMO Capital analyst, Phillip Jungwirth.

Phillip Jungwirth has given his Hold rating due to a combination of factors related to Crescent Energy’s evolving asset base and financial profile. He notes that the company has significantly reshaped its portfolio by concentrating in the Eagle Ford, Permian, and Uinta, which has lifted margins and improved cost efficiency, and he views the resulting asset mix as more competitive in terms of returns and inventory. However, he characterizes 2026 as a transition year, with production from the Vital acquisition moving toward a steady-state level and the pace of debt reduction constrained by weaker expected oil prices.
At the same time, Jungwirth points out that Crescent’s shares appear inexpensive versus peers on several valuation measures and offer strong free cash flow yields, though part of that is driven by hedge benefits, below-maintenance capital spending, and a comparatively higher leverage position. While leverage remains within management’s target and hedging provides some cash flow protection, he highlights ongoing macro uncertainty and a base case of roughly $60 per barrel oil, which he believes will delay any material re-rating of the stock. Taken together, these positives and risks lead him to see medium-term upside potential but not enough near-term catalysts to justify a more aggressive stance, supporting his Market Perform (Hold) recommendation and $10 price target.