California Resources Corp, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Kalei Akamine from Bank of America Securities reiterated a Buy rating on the stock and has a $66.00 price target.
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Kalei Akamine has given his Buy rating due to a combination of factors related to California Resources Corp’s strategic moves and legislative developments. The recent acquisition of Berry Petroleum is seen as a positive step, adding value to CRC’s stock by approximately $2 per share. This acquisition is expected to bring significant synergies, including cost savings in SG&A and interest expenses, which enhance the company’s financial outlook.
Furthermore, the passing of California’s SB 237 legislation is considered a de-risking factor for CRC’s operations, allowing for a reduction in the discount rate applied to its exploration and production activities. This legislative change is anticipated to improve the operating environment for CRC, contributing an additional $4 per share to the price objective. These factors combined have led to an increased price objective of $66 per share, reinforcing the Buy rating.
In another report released on September 21, Jefferies also maintained a Buy rating on the stock with a $71.00 price target.