Comstock shorts should factor in potential of Jones go-private bid, says KeyBanc

KeyBanc analyst Tim Rezvan points out similarities between Continental Resources, which was taken private in 2022 by majority shareholder Harold Hamm, and Comstock Resources, which is majority owned by Jerry Jones. While the firm “can’t speak to Mr. Jones’s inclination to follow suit,” it notes that the Dallas Cowboys were recently valued at $11B by CNBC and sees the Cowboys, and the NFL soon allowing minority private equity investments in teams, as “a significant funding lever” that could fund the purchase of the remaining $851M of Comstock shares trading in the market. The firm keeps a Sector Weight rating on Comstock shares, but believes that investors who are short the stock “should factor in a potential short squeeze if the Jones family goes all in and takes Comstock private.”