California Resources stock gets Buy rating as UBS sees permit easing as positive

Published 15/09/2025, 15:22
California Resources stock gets Buy rating as UBS sees permit easing as positive

Investing.com - UBS reiterated a Buy rating and $63.00 price target on California Resources (NYSE:CRC), currently trading at $55.98, following the passage of SB-237 by the California Legislature over the weekend. The stock appears undervalued according to InvestingPro analysis, with 5 analysts recently revising earnings estimates upward. The company maintains a "GREAT" financial health score of 3.37 out of 5.

The legislation eases restrictions on the issuance of new upstream permits within California, which UBS views as a clear positive for the company.

UBS noted that the regulatory change gives California Resources the ability to increase activity and maintain flat production volumes.

The investment bank also highlighted that the legislation demonstrates that California's government can be supportive of oil and gas investment.

UBS believes the combination of these factors helps de-risk the upstream unit at California Resources.

In other recent news, California Resources Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.10, exceeding the forecasted $0.90. Additionally, California Resources reported revenue of $978 million, significantly above the anticipated $784 million. In response to these developments, BofA Securities increased its price target for California Resources from $53.00 to $60.00, maintaining a Buy rating. Mizuho also raised its price target on the company to $64.00 from $61.00, citing capital efficiencies and regulatory pathways as contributing factors. Meanwhile, Texas Capital Securities reiterated its Buy rating on Berry Petroleum, with a price target of $7.50. This comes after the release of draft legislation in California, which Texas Capital Securities views positively for Berry Petroleum and California Resources. These recent developments highlight ongoing investor interest and confidence in both companies.

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