California Resources weakness reflects continued stay in place, says RBC

RBC Capital analyst Scott Hanold reiterated an Outperform rating and $70 price target on California Resources, noting that shares are down 5%-10% in what appears to be a near-term adverse ruling regarding the oil and gas permit process in California. The firm believes investors were preparing for an adverse outcome, however, the uncertainty on the go-forward oil and gas permitting is weighing on the stock.