William Blair analyst Neal Dingmann has maintained their neutral stance on CIVI stock, giving a Hold rating on September 30.
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Neal Dingmann has given his Hold rating due to a combination of factors concerning Civitas Resources’ strategic position and market dynamics. The company is actively exploring potential strategic initiatives, though there’s no guarantee of any significant developments. The current lack of inventory in the Lower 48 states provides a favorable context for the company, and there is a higher chance of a company sale rather than an asset sale in the near term.
Despite the interest that Civitas’s Delaware Basin acres might attract, the broader industry dynamics suggest that a potential acquirer would likely be a company with nearby or contiguous assets. However, recent transactions and a constrained upstream environment indicate that other exploration and production companies, particularly those with limited future inventory, might also be interested. Additionally, Civitas is reportedly considering a sale to a peer of similar or larger size, which could offer operational synergies and financial benefits, given its current financial metrics and callable debts.
According to TipRanks, Dingmann is a 3-star analyst with an average return of 1.5% and a 44.86% success rate. Dingmann covers the Energy sector, focusing on stocks such as Civitas Resources, Diamondback, and Devon Energy.
In another report released on September 30, Roth MKM also maintained a Hold rating on the stock with a $30.00 price target.