Coterra Energy initiated with an Outperform at William Blair

William Blair analyst Neal Dingmann initiated coverage of Coterra Energy (CTRA) with an Outperform rating and fair value estimate of $36, which represents 37% upside. The firm says the company provides multi-basin exposure to the Permian and Marcellus. It sees Coterra resuming “material” shareholder returns given its “pristine” balance sheet and potential for higher future free cash flow. Coterra could sell its mid-continent assets to fund another Permian acquisition, the analyst tells investors in a research note.