UPDATE: BMO Capital Markets Upgrades Comstock Resources to Outperform on Risk.Reward

BMO Capital Markets upgraded Comstock Resources (NYSE: CRK) from Market Perform to Outperform and maintained a $17.00 price target.

BMO Capital Markets said, "We believe current trading levels present a favorable risk/reward at which to gain exposure to early-stage exploration efforts targeting the Wolfcamp resource in Reeves County, TX, where the company retains ~42k net acres and where larger producers can be found. We see a firmer backstop on valuation today to make the recommendation investors step out on the risk curve. Frankly, this call is grounded in the results of one well. Here, we're referring to the company's Gaucho State 15 1H targeting the Wolfcamp “A” and drilled with an extended lateral length of ~6,800' (18 stages)."

Comstock Resources closed at $13.72 on Friday.

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