David Deckelbaum, an analyst from TD Cowen, maintained the Buy rating on California Resources Corp (CRC – Research Report). The associated price target remains the same with $74.00.
David Deckelbaum has given his Buy rating due to a combination of factors that highlight California Resources Corp’s strong financial positioning and strategic initiatives. Despite a recent decline in share price, largely attributed to concerns over payment deferrals and private equity sales, the company has demonstrated a solid fiscal outlook with a promising FY25 guidance. The guidance indicates a more capital-efficient program with production levels in line with expectations but at a significantly reduced capital expenditure.
Furthermore, CRC’s management has shown a proactive approach in addressing potential equity issuance concerns by committing to substantial share buybacks, which could mitigate the impact of any private equity share sales. Additionally, the company’s strategic focus on enhancing sidetrack opportunities and securing permits is expected to bolster production capabilities. The anticipation of improved permitting activity and the potential for unlocking value through carbon capture and storage projects further supports the optimistic outlook for CRC’s future performance.
Deckelbaum covers the Energy sector, focusing on stocks such as Diamondback, California Resources Corp, and Chord Energy. According to TipRanks, Deckelbaum has an average return of -4.2% and a 35.03% success rate on recommended stocks.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $62.00 price target.
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