Analysts sure do seem to like this stock even though it has gone no where over the last 5 months.
On July 22, 2020, Mizuho analyst Vincent Lovaglio initiated coverage of Comstock Resources with a Buy rating and $9 price target. The company has the “right profile” for an above-strip gas price outlook, with lower cost operations and relatively higher financial leverage, Lovaglio tells investors in a research note. The analyst believes Comstock will generate 30%-plus free cash flow yield in 2022 with leverage at 1.7 times.
On July 21, 2020, Citi analyst Kevin Cunane initiated coverage of Comstock Resources with a Buy rating and $8 price target. The analyst sees see 70% upside with a “positive risk/reward” on gas inflation to $3.40 in 2021, a 2021 free cash flow yield of 12% even at strip, a desire to own Haynesville exposure “which bears less infrastructure risk,” and buying gas “at the bottom of the cycle.”
On June 17, 2020, BMO Capital analyst Phillip Jungwirth initiated coverage of Comstock Resources with an Outperform rating and $8 price target. The company has over 300,000 net acres in the Haynesville, with “meaningful running room” in core Louisiana parishes, Jungwirth tells investors in a research note. Comstock’s “lean” cost structure should translate to strong free cash flow and production growth optionality, adds the analyst.
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