Siebert Williams downgraded Comstock Resources to Sell from Hold with an unchanged price target of $9. The Sell rating is driven by valuation, as the firm believes Comstock shares have “significantly outstripped fundamentals,” partially fueled by potential take private chatter, which the firm views as “highly improbable.” Heading into Q3 results for the Oil & Gas Exploration & Production group, the firm models EBITDA misses for about 84% of its coverage, noting that the natural gas names are expected to once again generate wider misses on average due to pricing. Consensus needs to recalibrate on several names due to typical timing, seasonality, pricing, as well as to incorporate recent acquisitions, the analyst tells investors in a preview note.
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