Bank of America Securities analyst Noah Hungness reiterated a Hold rating on Chord Energy (CHRD – Research Report) yesterday and set a price target of $138.00.
Noah Hungness has given his Hold rating due to a combination of factors impacting Chord Energy’s performance and outlook. The company’s recent quarterly results showed a notable outperformance in NGL production, which exceeded expectations and contributed to a higher-than-anticipated adjusted EBITDA. However, despite these positive aspects, other production metrics such as oil and natural gas only slightly surpassed forecasts, indicating a more balanced performance overall.
Looking ahead, Chord Energy’s guidance for the upcoming quarter reflects potential upside risks in oil production, although winter weather has already affected initial projections. The company’s capital expenditure plans align with market expectations, yet there is a concern regarding the anticipated increase in lease operating expenses, which could pose a challenge. Additionally, while Chord Energy is enhancing its cash return strategy through share repurchases and operational efficiencies, the overall risk/reward profile for oil-focused companies in the Williston Basin remains mixed, justifying the Hold rating.
Hungness covers the Energy sector, focusing on stocks such as Northern Oil And Gas, Gulfport Energy, and Vital Energy. According to TipRanks, Hungness has an average return of -1.3% and a 31.25% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $136.00 price target.