Analyst Kalei Akamine of Bank of America Securities reiterated a Buy rating on Comstock Resources (CRK – Research Report), boosting the price target to $25.00.
Kalei Akamine has given his Buy rating due to a combination of factors including Comstock Resources’ strategic positioning in the Western Haynesville region. The company has significant scale potential with 700,000 gross acres, which are well-suited for long-lateral development. This area is seen as a promising investment theme due to rising gas demand and limited gas-directed locations outside of the Appalachia region.
Kalei Akamine also highlights the successful drilling results in the Western Haynesville, with 18 wells showing strong initial production rates. Despite higher well costs compared to the Legacy Haynesville, the productivity and breakeven potential are favorable. This success is expected to drive a deleveraging case, improving the company’s financial metrics significantly over the next few years. The combination of these factors supports the Buy rating with a price objective of $25 per share.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRK in relation to earlier this year.