In a report released today, Kalei Akamine from Bank of America Securities maintained a Buy rating on Comstock Resources (CRK – Research Report), with a price target of $24.00.
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Kalei Akamine has given his Buy rating due to a combination of factors including Comstock Resources’ strategic land acquisitions and operational efficiencies. Over the past four years, the company has assembled a significant and contiguous land position in the Western Haynesville, which now spans 698,000 net acres. This expansion provides ample drilling opportunities, estimated at 1,640 locations, which could support a decade of development at a low cost per entry.
Furthermore, the company has demonstrated improved operational efficiency, as evidenced by increased drilling speed and reduced drilling and completion costs. These advancements have allowed Comstock to achieve a competitive breakeven price and maintain a positive trajectory on cost management. Additionally, the company’s plan to increase production through strategic well completions and rig additions is expected to bolster cash flow and support deleveraging efforts, with a notable improvement in net debt to EBITDA ratio anticipated by the end of 2026.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRK in relation to earlier this year.