Crescent Energy Company Class A, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Gabriele Sorbara from Siebert Williams Shank & Co maintained a Buy rating on the stock and has a $14.00 price target.
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Gabriele Sorbara has given his Buy rating due to a combination of factors surrounding Crescent Energy Company’s strategic moves and financial positioning. The recent acquisition of Vital Energy is seen as a significant step that, despite involving a substantial amount of debt, is expected to enhance free cash flow from the acquired assets. This is achieved by reducing operational activity, which aligns with Crescent’s goal of maintaining a leverage ratio below 1.5x net-debt/EBITDA.
Furthermore, Crescent Energy’s strategy to increase its non-core asset sale target to $1.0 billion is aimed at strengthening its balance sheet post-acquisition. The company’s focus on expanding its presence in the Permian Basin through additional mergers and acquisitions is seen as a move to build scale and attract more investor attention. While there are some concerns about the declining production profile, the overall valuation remains attractive, supporting Sorbara’s Buy rating with a price target of $14.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $11.00 price target.