Civitas Resources downgraded to Neutral from Buy at Roth Capital

Roth Capital analyst Leo Mariani downgraded Civitas Resources (CIVI) to Neutral from Buy with a price target of $34, down from $46. The firm is citing its cautious stance on the macro set-up for oil prices in the near term as we think that supply and demand are trending more out of balance as pending OPEC+ production increases are pointing to a likely oversupply situation this summer, the analyst tells investors in a research note. Roth also points to the company’s high financial leverage vs. peers, its more limited share buyback at weaker oil prices, and its recent challenges with operational execution.