Market Overview

UPDATE: Stifel Nicolaus Upgrades Comstock Resources to Buy on Gas-to-Oil Transition

Related CRK
22 Biggest Mid-Day Gainers For Thursday
Mid-Afternoon Market Update: Marvell Gains On Earnings Beat; Hibbett Shares Plummet

Stifel Nicolaus upgrades Comstock Resources (NYSE: CRK) from Hold to Buy and establishes a price target of $19.

Stifel Nicolaus comments, "In our view, CRK has been making a successful asset/capex transition from gas to oil and we expect the impact of it to start showing up in the stock in 2H12. We see several drivers for the stock – 1) gap between CF and capex closing by 4Q12, 2) Eagle Ford JV possibility by early fall, 3) further validation/testing of its Wolfbone acreage, including the upcoming drilling of its first two horizontals. In addition, recent asset sales ($123 mm in May) and terming out of debt ($300 mm in June) have improved the balance sheet profile. With the balance sheet improved, as the oil mix takes hold (12% in 1Q with expectations of it moving to 19% by 4Q), and the funding gap closes, the discount being applied to this name should erase."

CRK closed at $14.45 on Friday.

Latest Ratings for CRK

Jan 2017BairdUpgradesNeutralOutperform
Sep 2016BairdMaintainsNeutral
Mar 2016Imperial CapitalDowngradesOutperformIn-Line

View More Analyst Ratings for CRK
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Upgrades Price Target Intraday Update Analyst Ratings


Related Articles (CRK)

View Comments and Join the Discussion!