Civitas Resources downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Civitas Resources (CIVI) to Neutral from Overweight with a price target of $62, down from $68. The shares trade at a discounted valuation, but the company’s priorities “have clearly shifted” following the Q4 report, with acquisitions and debt reduction now taking priority over cash return to shareholders, the analyst tells investors in a research note. The firm says the shift away from share buybacks will remove an incremental buyer of Civitas shares from the market. Despite the stock selloff post earnings, JPMorgan does not see a clear path for the stock to Civitas in the near term.