Investment thesis
Since our last take on Cabot Oil & Gas (COG), our bullish view on the company materialized marginally, with the company’s share price appreciating 1.1% to $18.37.
Going forward our recommendation remains unchanged ahead of the heating season, given that surging natural gas demand is set to boost gas pricing, which in turn should enhance COG’s revenue stream and its share price.
Yet, COG is still overvalued compared to our peer group and while its profitability level deteriorated moderately over the 3Q, the company’s fundamentals remains strong, thanks to its low