Imperial Capital Has Positive Outlook on Comstock Resources

In a report published Wednesday, Imperial Capital analyst Kim Pacanovsky reiterated an Outperform rating and $10.50 price target on

. In the report, Imperial Capital noted, "We are maintaining our Outperform rating on CRK shares and one-year price target of $10.50, 108% above the recent share price. Unhedged CRK has several levers to pull should pricing remain weak, and we believe the shares offer attractive risk/reward at current levels. In its 4Q14 earnings conference call on 2/10/15, CRK detailed its commitment to preserving capital should gas pricing erode further and laid out the possibility of cutting to a single rig program or reducing the dividend if needed, along with JV possibilities. Further, management had a confident tone on the company's restart of the Haynesville program based upon the first long-lateral well drilling without a hitch and the company's familiarity with Encana's long lateral program. We are adjusting EPS estimates for 2015 due to a lower share count and fine-tuning of costs, lowering 2015 EPS to ($2.58) from ($2.39). Our EBITDA increases to $254.3mn from $245.8mn." Comstock Resources closed on Tuesday at $5.05.