Analyst Gabriele Sorbara from Siebert Williams Shank & Co reiterated a Buy rating on Crescent Energy Company Class A (CRGY – Research Report) and decreased the price target to $11.00 from $21.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors related to Crescent Energy Company’s financial performance and market positioning. Despite Crescent Energy reporting mixed first-quarter results with lower-than-expected oil production, DCFPS, and EBITDA, the company managed to exceed free cash flow expectations due to reduced capital expenditures. This financial strength, coupled with the company’s strategic share repurchases at attractive prices, supports a positive outlook.
Furthermore, Crescent Energy’s valuation remains compelling, as it trades at a discount in terms of EV/EBITDA compared to its peers, while offering the highest free cash flow yield in its group. The company also possesses significant net asset value upside, bolstered by a robust inventory runway. Although there are slight adjustments in production guidance due to asset sales, the company’s flexibility to adapt to fluctuating commodity prices further reinforces the Buy recommendation.
In another report released on April 21, KeyBanc also maintained a Buy rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is neutral on the stock.