Coterra Energy just upgraded at UBS, here’s why

UBS upgraded Coterra Energy to Buy from Neutral with a price target of $31, down from $33. The upgrade is reflective of Coterra’s balance sheet strength and oil diversification, which should insulate them in a less than $3.00/mmbtu environment, the analyst tells investors in a research note. Coterra has also added increased flexibility and capital efficiencies into the forward outlook through improved well performance, faster drill times, and high grading the development program, and the strength is not currently priced into the stock, the firm adds.