Comstock Resources initiated with a Buy at BofA

BofA analyst Kalei Akamine initiated coverage of Comstock Resources (CRK) with a Buy rating and $14 price target The SMID cap natural gas levered E&P with operations focused in the Haynesville is “one of the most levered E&Ps in our coverage,” with debt that makes up 45% of its enterprise value, but these notes have long dated maturities, in 2029 and 2030, the analyst tells investors. Meanwhile, its hedge book leaves exposure to the upside with a $3.50/mcf floor that protects the company’s capital program and operational leverage to a higher gas price environment, the analyst added.