Iberia Capital Partners Reiterates Outperform Rating, $35 PT on Comstock Resources

In a report published Wednesday, Iberia Capital Partners reiterated its Outperform rating and $35.00 price target on Comstock Resources

. Iberia Capital Partners noted, “Announced budget of $420 mm comes in below ICP and consensus expectations of $460 mm as the company will run a 3-rig program in the Permian instead of the previously modeled 4-rig program. The lower spending results in lower growth but also a lower overspend while still providing 45% growth in oil production...We are currently forecasting $384 mm in discretionary cash flow in 2013, leaving a $36 mm shortfall between cash flow and capital spending. At the end of 3Q12, CRK had $2.5 mm in cash and $215 mm available on its borrowing base, providing more than adequate liquidity to cover the forecast spending gap in 2013.” Comstock Resources closed on Tuesday at $15.23.