Comstock Resources upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded Comstock Resources (CRK) to Outperform from Peer Perform with a $34 price target Wolfe sees Comstock’s investment case evolving from a distributable cash flow valuation where the multiple is the output, to a resource-based valuation reflecting a drilling backlog being derisked by ongoing well tests, previously overlooked by industry, the analyst tells investors in a research note. Comstock is primed to benefit from the firm’s base case that sees elevated gas prices over the next 18 months, Wolfe adds.