Analyst Gabriele Sorbara from Siebert Williams Shank & Co maintained a Sell rating on Comstock Resources (CRK – Research Report) and keeping the price target at $15.00.
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Gabriele Sorbara’s rating is based on several factors, primarily stemming from Comstock Resources’ mixed financial results and guidance that fell short of expectations. The company reported a beat in DCFPS and EBITDA due to increased capital expenditures from acquiring additional acreage in the Western Haynesville. However, the overall results and future outlook appear disappointing, especially since the increased disclosures and expanded position in the Western Haynesville are not expected to generate significant enthusiasm among investors.
Moreover, Sorbara notes that the valuation of Comstock Resources has surpassed its fundamentals, particularly at current natural gas strip prices, leading to an unfavorable risk/reward profile with considerable downside risk. The 1Q25 production guidance was notably below expectations, with capital expenditures higher than anticipated. Similarly, the 2025 outlook suggests lower production efficiency with slightly increased capital spending, which further supports the Sell rating. Sorbara plans to reassess estimates following the company’s earnings call.
Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, EQT, and Matador Resources. According to TipRanks, Sorbara has an average return of 18.0% and a 52.72% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Sell rating on the stock with a $6.00 price target.