Comstock Resources upgraded to Neutral from Sell at Citi

Citi analyst Paul Diamond upgraded Comstock Resources to Neutral from Sell with a price target of $12, up from $10. The analyst favor the company’s large acreage position in the Haynesville with a "deep inventory" of long-lateral well targets. A low operating cost structure and strong natural gas differentials will drive strong relative cash margins versus peers, the analyst tells investors in a research note. However, Citi expects downward pressure on natural gas pricing through 2023 given both recessionary and fundamental concerns. This pressure could directly impact Comstock’s cash flow and hurt both margins and cash return efforts, the firm adds.