Mizuho Securities analyst Nitin Kumar CFA has maintained their bullish stance on CTRA stock, giving a Buy rating yesterday.
Nitin Kumar CFA has given his Buy rating due to a combination of factors that highlight Coterra Energy’s strong financial performance and strategic capital allocation. The company delivered impressive earnings and cash flow per share, surpassing both Mizuho Securities and Street expectations, driven by higher oil and total volumes. Additionally, Coterra’s ability to adjust its spending between the Permian and Marcellus regions demonstrates its flexibility in capital allocation, aligning with commodity price outlooks.
Another key factor in Kumar’s rating is Coterra’s commitment to shareholder returns and balance sheet improvement. The company returned a significant portion of its free cash flow to shareholders and increased its base dividend. Furthermore, Coterra’s updated three-year outlook projects consistent oil and gas growth, supported by a robust capital budget and strategic cost synergies. The company’s valuation metrics also compare favorably against its peers, reinforcing the Buy rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $37.00 price target.