TD Cowen analyst David Deckelbaum maintained a Buy rating on Coterra Energy yesterday and set a price target of $33.00.
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David Deckelbaum’s rating is based on a combination of factors, including Coterra Energy’s performance and strategic plans. The company’s oil and total production exceeded expectations, with oil production surpassing consensus by 1% and total production by 3% above the model. This strong production performance, particularly in natural gas liquids, contributed positively to the company’s outlook.
Furthermore, Coterra Energy’s guidance for FY26 indicates a modest reduction in capital expenditure, which is expected to be less than $2.3 billion, lower than both the model and consensus estimates. The company plans to achieve this through efficiency gains, with well costs projected to decrease by 5% from FY25 estimates. Additionally, Coterra Energy’s focus on maintaining a low reinvestment rate and its efforts to reduce debt, having paid down $600 million of its term loans, further support the Buy rating. These strategic moves suggest a positive trajectory for the company’s financial health and operational efficiency.
According to TipRanks, Deckelbaum is a 3-star analyst with an average return of 3.6% and a 38.12% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Sable Offshore, APA, and Coterra Energy.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $26.00 price target.