Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Wells Fargo initiated coverage on California Resources (NYSE:CRC) with an Overweight rating and a price target of $58.00 on Tuesday. This target represents a potential 23% upside from CRC’s current trading price of $47.31. According to InvestingPro data, analysts broadly share this positive outlook with a consensus "Strong Buy" recommendation.
The investment firm’s analysis indicates that CRC’s shares currently trade at their proved developed producing (PDP) value, with both PV-10 and current enterprise value estimated at $4.8 billion. This valuation perspective aligns with InvestingPro metrics showing CRC is currently undervalued, trading at an attractive P/E ratio of 11.1 with a "GREAT" overall financial health score.
Wells Fargo notes that beyond CRC’s core business of conventional oil production in California, the company is pursuing multiple strategies to unlock value and grow its carbon capture, utilization, and storage (CCUS) business and owned power assets.
In what Wells Fargo describes as a conservative case, the firm values CRC’s power business at approximately $7.70 per share.
The CCUS business is estimated to be worth about $5 per share, calculated using a 20% discount rate and less than 8 million tons per annum of injection from 2030.
In other recent news, California Resources Corporation (CRC) reported its third-quarter earnings for 2025, showcasing an earnings per share (EPS) of $1.46. This figure exceeded analysts’ expectations of $1.29, marking a 13.18% increase above the forecast. Despite this positive earnings surprise, the company’s revenue did not meet projections, coming in at $855 million compared to the anticipated $875.82 million. These developments are part of a broader picture of recent activity surrounding CRC. Analyst firms have not provided any new upgrades or downgrades in light of this earnings report. The company’s stock performance in after-hours trading showed a rise, but this article does not focus on stock price movements. Investors may find the earnings beat noteworthy, even as the revenue figures fell short. These recent developments provide a snapshot of CRC’s financial health and market position.
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