Crescent Energy initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Crescent Energy with a Neutral rating and $12 price target. Crescent is a diversified Smid-cap exploration and production company with a concentrated position in the Eagle Ford and Uinta Basin, the analyst tells investors in a research note. The firm likes the business model and management team and finds the stock’s valuation “compelling,” but its Neutral stance on the stock stems from macro cautiousness on oil fundamentals. n addition, JPMorgan’s well productivity analysis suggests lower reinvestment returns than Crescent’s shale peers.