Coterra Energy (CTRA – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Devin McDermott from Morgan Stanley maintained a Hold rating on the stock and has a $32.00 price target.
Devin McDermott has given his Hold rating due to a combination of factors related to Coterra Energy’s recent performance and future outlook. The company’s updated guidance for 2025 aligns closely with previous projections, indicating a steady but not exceptional growth trajectory. Coterra Energy’s oil production is expected to grow at a compound annual growth rate (CAGR) of over 5%, which is slightly above consensus expectations, but their total production growth is projected to be between 0-5%, aligning with market expectations.
Despite reporting oil production and total production figures that exceeded both consensus and prior Morgan Stanley estimates, Coterra’s capital expenditure plans remain unchanged, which suggests a cautious approach to expansion. The company’s EBITDA and cash flow per share were slightly below consensus, reflecting a modest financial performance. Additionally, while there is potential for increased drilling activity in the Marcellus region, the decision to increase capital expenditure will depend on favorable gas market conditions. These factors collectively contribute to the Hold rating, indicating a balanced view of potential risks and opportunities.
McDermott covers the Energy sector, focusing on stocks such as Exxon Mobil, Diamondback, and Conocophillips. According to TipRanks, McDermott has an average return of 8.6% and a 54.47% success rate on recommended stocks.