Roth Capital downgraded Coterra Energy (CTRA) to Neutral from Buy with a price target of $28, down from $30. The firm believes that the company will not see a higher offer than that of Devon Energy (DVN) or a competing bidder at this time despite the “modestly disappointing” takeout price, the analyst tells investors in a research note. It would take a larger company to buy Coterra given its $25 billion enterprise value, and companies with Delaware Basin adjacency like ConocoPhilips (COP), Chevron (CVX), and EOG Resources (EOG) are not likely to be interested in a competitive bidding situation, the firm added.
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