Civitas Resources downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Scott Hanold downgraded Civitas Resources (CIVI) to Sector Perform from Outperform with a price target of $40, down from $47. The firm sees good asset support for valuation, but the confluence of oil market uncertainty along with higher financial leverage likely tempers the stock’s upside potential, the analyst tells investors in a research note. While the management remains confident in achieving year-end 2025 debt targets, RBC warns that Civitas leverage is likely staying elevated relative to peers.