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UBS downgrades Comstock Resources to Sell on valuation

UBS analyst Peyton Dorne downgraded Comstock Resources (CRK) to Sell from Neutral with a price target of $20, up from $19. The stock is up 20% year-to-date and trade a “large valuation premium” to peers, the analyst tells investors in a research note. UBS believes its price target fairly reflects Comstock’s Western Haynesville resource upside with a lack of capital returns. It sees potential downside in the shares from a fall in gas prices and execution risk.

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