Comstock Resources upgraded to Neutral from Underperform at Mizuho

Mizuho upgraded Comstock Resources (CRK) to Neutral from Underperform with a price target of $18, up from $10. The firm adjusted ratings in the oil and gas exploration and production sector as part of its 2025 outlook. Commodity market fundamentals suggest going long natural gas stocks, but valuations are more attractive in oil-focused subsectors, particularly large cap exploration and production, the analyst tells investors in a research note. The firm says that in both cases, investors need to underwrite long-term commodity prices that are higher than current strip – “a daunting ask, given the historical performance of the sector.” Mizuho prefers to “stick to larger, quality stocks with reserve depth, exposure to key themes, strong balance sheets and a commitment to cash generation/returns.” Its top sector picks into 2025 are Coterra Energy (CTRA), Chevron (CVX) and Chord Energy (CHRD).