California Resources stock price target raised to $58 by UBS

Investing.com - UBS raised its price target on California Resources (NYSE:CRC) to $58.00 from $51.00 on Monday, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for CRC range from $44 to $68, with the company currently trading at an attractive P/E ratio of 8.05x.

The price target increase follows what UBS described as a strong first quarter update from the company, with its integrated business model supporting an improved outlook despite a pullback in oil prices. The company’s financial health score of 3.15 on InvestingPro indicates "GREAT" overall performance, with particularly strong profitability metrics.

UBS expects this trend to continue in the second half of 2025, keeping California Resources insulated from near-term oil price concerns.

The firm views 2025 as a catalyst-rich period for California Resources across its asset base, highlighting several potential growth drivers for the company.

These catalysts include upstream permitting progression, continued execution on the carbon capture and storage (CCS) business, and the anticipated announcement of a long-term power purchase agreement (PPA) at EHPP.

In other recent news, California Resources Corporation reported strong financial results for the first quarter of 2025, surpassing market expectations. The company achieved an earnings per share of $1.07, significantly higher than the forecasted $0.8357, and reported revenue of $912 million, exceeding projections by $49.78 million. Additionally, California Resources announced a significant share repurchase agreement, buying back 4.95 million shares from IKAV Impact S.a.r.l. for $227.7 million. This transaction is part of the company’s larger $1.35 billion Share Repurchase Program.

Analyst activity around California Resources has been notable, with Mizuho (NYSE:MFG) raising its price target for the company to $61, citing a potential 30% free cash flow beat against consensus estimates. Barclays (LON:BARC) also upgraded the company’s stock from Equalweight to Overweight, increasing the price target to $60.00. The upgrade was influenced by positive feedback from investor meetings and a favorable regulatory environment for oil and gas operations in California. Furthermore, California Resources’ carbon management initiatives continue to attract attention, with analysts highlighting potential growth opportunities in this area.

The company is also making strategic moves in carbon capture and storage, with its 26R carbon capture project being a focal point for investors. Regulatory developments, such as CO₂ pipeline legislation and Kern County exploration permitting, are anticipated to impact the company’s operations in the future. Overall, these developments reflect California Resources’ strategic direction and operational focus.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.