2023-04-20 14:12:43 ET
Coterra Energy ( NYSE: CTRA ) +0.4% in Thursday's trading as most oil and gas stocks dip into the red, as Citi upgraded the stock and Comstock Resources ( NYSE: CRK ) to Neutral from Sell with respective $25 and $12 price targets, as downside is viewed as limited for both names after declining during the past six months.
Citi's Scott Gruber cited actions to reduce activity in the Haynesville shale could be seen as beneficial to Marcellus producers, Citi's Scott Gruber said in explaining his Coterra ( CTRA ) upgrade.
Meanwhile, Comstock ( CRK ) is "prepared to make (what we view as) the necessary operational cuts to converse cash, which combined similar actions from Haynesville peers, should limit further downside," Gruber wrote.
Generally, Q1 results for oil and gas E&Ps "appear to present little operational risk, given cooperative weather and improving frac efficiency."
Coterra Energy ( CTRA ) "has made an about-turn on capital allocation" and will no longer focus on dividends, Michael Wiggins de Oliveira writes in an analysis published recently on Seeking Alpha .
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Coterra Energy, Comstock Resources raised to Hold from Sell rating at Citi