Analyst Gabriele Sorbara of Siebert Williams Shank & Co reiterated a Buy rating on Chord Energy (CHRD – Research Report), retaining the price target of $212.00.
Gabriele Sorbara has given his Buy rating due to a combination of factors that highlight Chord Energy’s strong financial performance and promising future outlook. The company reported better-than-expected results for the fourth quarter of 2024, with key metrics such as DCFPS, EBITDA, and FCF surpassing expectations. This was achieved through increased oil production, improved pricing, reduced capital expenditures, and a more efficient operating cost structure.
Additionally, Chord Energy’s guidance for the first quarter of 2025 exceeded expectations despite adverse weather conditions, and the company reaffirmed its three-year outlook. The valuation is attractive, with a high free cash flow yield and low financial leverage, suggesting potential for superior capital returns. Furthermore, the stock is trading at a significant premium to its ‘hard value,’ indicating a favorable risk/reward setup, supported by a substantial inventory of undrilled assets. These factors collectively justify the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $193.00 price target.