Comstock Resources (NYSE:CRK) Stock Price Expected to Rise, Mizuho Analyst Says

Key Points

• Mizuho raised its price target for Comstock Resources from $19 to $20 while maintaining a neutral rating, implying 26.22% upside from the prior close.
• Analyst sentiment remains cautious: Comstock has an average “Reduce” rating and a consensus price target of $15, with six Hold ratings and four Sell ratings.
• Comstock reported quarterly EPS of $0.03, ahead of the $0.02 estimate, but revenue fell 24.9% year over year to $353.28 million, below analyst expectations.

Comstock Resources (NYSE:CRK - Get Free Report) had its price objective upped by investment analysts at Mizuho from $19.00 to $20.00 in a report issued on Tuesday, Benzinga reports. The brokerage presently has a "neutral" rating on the oil and gas producer's stock. Mizuho's target price would indicate a potential upside of 26.22% from the stock's previous close.

Several other research firms also recently commented on CRK. Wall Street Zen downgraded shares of Comstock Resources from a "sell" rating to a "strong sell" rating in a research report on Saturday. The Goldman Sachs Group decreased their price objective on Comstock Resources from $13.00 to $10.00 and set a "sell" rating for the company in a report on Tuesday, June 30th. Zacks Research downgraded Comstock Resources from a "hold" rating to a "strong sell" rating in a report on Thursday, July 16th. UBS Group reissued a "sell" rating and issued a $13.00 price target (down from $17.00) on shares of Comstock Resources in a research note on Monday, May 11th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Comstock Resources in a research report on Monday, August 17th. Six analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Comstock Resources currently has an average rating of "Reduce" and a consensus target price of $15.00.

Comstock Resources Price Performance

NYSE CRK traded up $1.42 during trading on Tuesday, hitting $15.85. 6,632,671 shares of the company's stock were exchanged, compared to its average volume of 2,495,100. The company has a market cap of $4.65 billion, a PE ratio of 8.90 and a beta of 0.13. 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 fifty-two week low of $12.12 and a fifty-two week high of $28.10. The stock's 50 day moving average price is $13.72 and its two-hundred day moving average price is $16.01.

Comstock Resources (NYSE:CRK - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The oil and gas producer reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.01. The company had revenue of $353.28 million for the quarter, compared to analyst estimates of $419.22 million. Comstock Resources had a net margin of 23.31% and a return on equity of 4.12%. The firm's revenue was down 24.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.13 EPS. Research analysts expect that Comstock Resources will post 0.4 EPS for the current year.

Institutional Trading of Comstock Resources

Institutional investors have recently made changes to their positions in the company. Old West Investment Management LLC bought a new position in Comstock Resources in the 2nd quarter valued at $4,104,000. BlackRock Inc. purchased a new position in shares of Comstock Resources in the 2nd quarter worth about $176,583,000. Liontrust Investment Partners LLP grew its position in Comstock Resources by 877.8% during the first quarter. Liontrust Investment Partners LLP now owns 128,938 shares of the oil and gas producer's stock valued at $2,718,000 after buying an additional 115,752 shares during the period. GSA Capital Partners LLP bought a new position in Comstock Resources during the second quarter valued at about $2,028,000. Finally, Renaissance Technologies LLC purchased a new stake in Comstock Resources during the first quarter worth about $2,780,000. Institutional investors 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: Large cash payment could materially strengthen Comstock’s balance sheet. Under a letter of intent, SOCAR would pay $1.65 billion for non-operated interests in Comstock’s Legacy and Western Haynesville assets, plus a 15% interest in Pinnacle Gas Services. Comstock expects the transaction to reduce net debt from approximately $3.1 billion to $1.5 billion, potentially lowering financial leverage and interest costs. Comstock Announces $1.65 Billion Strategic Partnership With SOCAR
• Positive Sentiment: SOCAR partnership adds strategic and potential international marketing benefits. Comstock will retain operatorship and control of the upstream and midstream assets while gaining a major international energy partner. SOCAR is also expected to provide opportunities to market Comstock’s natural gas to global customers, including potential LNG markets. Comstock Resources Enters Into Letter of Intent to Sell Assets to Azerbaijan State Oil Company
• Positive Sentiment: A separate $450 million drilling venture should support production growth. A partnership backed by majority stockholder Jerry Jones will fund most drilling and completion costs for 27 Haynesville wells over the next 12 months. The arrangement is intended to accelerate development of Comstock’s Western Haynesville acreage while limiting near-term capital requirements and improving access to Pinnacle’s gathering system. Comstock Announces Partnership With SOCAR and Haynesville Drilling Venture
• Neutral Sentiment: The transactions remain subject to execution and approvals. The SOCAR announcement is currently a letter of intent, with definitive agreements targeted by October 31 and closing expected by year-end. Regulatory, third-party and negotiation risks could delay or prevent completion.
• Negative Sentiment: Comstock will surrender portions of its future asset economics. SOCAR will receive working interests in key Haynesville properties and a Pinnacle stake. Although Comstock retains operational control and some interests can revert after SOCAR achieves a specified return, the company will share future production, cash flow and upside from the assets.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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