Comstock Resources (NYSE:CRK) Given New $15.00 Price Target at The Goldman Sachs Group

Key Points

• Goldman Sachs raised Comstock Resources’ price target to $15 from $9 but maintained a “Sell” rating, implying approximately 2.9% downside from the stock’s $15.45 price. The broader analyst consensus remains “Reduce,” with an average target of $15.80.
• Comstock’s latest quarter showed mixed results: adjusted earnings of $0.03 per share beat estimates, but revenue fell 24.9% year over year to $353.3 million, below expectations.
• The company signed a letter of intent for SOCAR to acquire interests in Haynesville assets for $1.65 billion in cash, potentially reducing net debt substantially; however, the transaction still requires definitive agreements, regulatory approvals and closing.

Comstock Resources (NYSE:CRK - Get Free Report) had its target price raised by equities researchers at The Goldman Sachs Group from $9.00 to $15.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "sell" rating on the oil and gas producer's stock. The Goldman Sachs Group's target price suggests a potential downside of 2.88% from the company's current price.

Several other equities research analysts also recently weighed in on CRK. Morgan Stanley set a $15.00 price target on Comstock Resources and gave the stock an "equal weight" rating in a report on Wednesday, August 19th. Wall Street Zen cut shares of Comstock Resources from a "sell" rating to a "strong sell" rating in a research note on Saturday. Roth Capital restated a "neutral" rating and issued a $14.00 target price on shares of Comstock Resources in a research note on Tuesday. Citigroup lowered their target price on shares of Comstock Resources from $19.00 to $16.00 and set a "neutral" rating on the stock in a report on Monday, July 20th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Comstock Resources in a report on Monday, August 17th. Eight investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $15.80.

Comstock Resources Stock Performance

Shares of NYSE CRK traded down $0.57 during midday trading on Wednesday, reaching $15.45. 2,042,868 shares of the company were exchanged, compared to its average volume of 2,519,821. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 0.98. Comstock Resources has a 1 year low of $12.12 and a 1 year high of $28.10. The stock has a fifty day simple moving average of $13.77 and a 200 day simple moving average of $15.98. The stock has a market cap of $4.53 billion, a P/E ratio of 8.66 and a beta of 0.14.

Comstock Resources (NYSE:CRK - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The oil and gas producer reported $0.03 EPS for the quarter, beating the consensus estimate of $0.02 by $0.01. Comstock Resources had a return on equity of 4.12% and a net margin of 23.31%.The firm had revenue of $353.28 million during the quarter, compared to the consensus estimate of $419.22 million. During the same period in the prior year, the business earned $0.13 EPS. The firm's revenue was down 24.9% compared to the same quarter last year. On average, research analysts forecast that Comstock Resources will post 0.4 earnings per share for the current fiscal year.

Institutional Trading of Comstock Resources

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rothschild Investment LLC grew its position in Comstock Resources by 740.4% during the fourth quarter. Rothschild Investment LLC now owns 1,143 shares of the oil and gas producer's stock worth $26,000 after buying an additional 1,007 shares during the period. Public Employees Retirement System of Ohio acquired a new stake in shares of Comstock Resources during the 2nd quarter valued at approximately $26,000. Advisory Services Network LLC acquired a new stake in shares of Comstock Resources during the 3rd quarter valued at approximately $27,000. Whittier Trust Co. of Nevada Inc. purchased a new stake in shares of Comstock Resources during the 1st quarter worth approximately $29,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Comstock Resources during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 36.13% of the company's stock.

More Comstock Resources News

Here are the key news stories impacting Comstock Resources this week:

• Positive Sentiment: Comstock signed a letter of intent for Azerbaijan’s SOCAR to acquire interests in its Legacy and Western Haynesville assets and a stake in Pinnacle Gas Services for $1.65 billion in cash. Comstock expects to use the proceeds to reduce pro forma net debt from approximately $3.1 billion to $1.5 billion, strengthening liquidity and lowering financial risk. Reuters article
• Positive Sentiment: The SOCAR partnership gives Comstock an international strategic partner with potential access to global LNG customers, while Comstock retains operatorship of the upstream assets and control of Pinnacle. The deal also provides validation for the value of Comstock’s Haynesville resource base. Comstock press release
• Positive Sentiment: A separate drilling venture with a partnership owned by majority stockholder Jerry Jones is expected to fund about $450 million of drilling and completion costs for 27 Haynesville wells over the next year. This could accelerate production growth while reducing Comstock’s near-term capital requirements. Inside Monkey article
• Neutral Sentiment: Mizuho raised its price target for CRK to $20 from $19 but maintained a Neutral rating, suggesting analysts see upside potential but remain cautious about the company’s outlook.
• Negative Sentiment: The SOCAR transaction is only a letter of intent and still requires definitive agreements, regulatory approvals and closing conditions. Comstock is targeting completion by year-end, so delays or failure to complete the sale could reverse some of the balance-sheet benefit. Analyst consensus article
• Negative Sentiment: Analysts have assigned CRK a consensus recommendation of “Reduce,” indicating that despite the strategic transactions, valuation, commodity-price exposure or operating risks may limit further gains.

About Comstock Resources

Comstock Resources, Inc is an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties in the United States. The company focuses on generating long-term value through the efficient development of unconventional resource plays and conventional prospects. Its activities encompass drilling, completion and production operations, as well as the marketing of natural gas, natural gas liquids and crude oil.

Comstock holds a core position in the Haynesville Shale of Northwest Louisiana, one of the most active natural gas plays in North America, and has built a complementary portfolio in the Delaware Basin of West Texas.

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