California Resources to have negative reaction to court ruling, says Roth MKM

Roth MKM notes that a California appellate court overturned a lower court’s decision to deem an existing environmental impact report covering parts of Kern County suitable for the purpose of issuing new drilling permits in the county and the firm expects California Resources shares to have a negative reaction to the news. California Resources has stated on multiple occasions that it still thinks that it can get drilling permits in Kern County even if the court ruling was unfavorable, but the timing of alternative path permits is “not too clear,” the analyst tells investors. The firm has a Buy rating and $58 price target on shares of California Resources, which are down nearly 9% to $48.49 in Thursday afternoon trading.