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Investing.com - BofA Securities raised its price target on California Resources (NYSE:CRC) to $60.00 from $53.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading at a modest P/E of 6.75x with a 3.1% dividend yield, has received positive earnings revisions from 8 analysts. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.
The price target increase comes as California Governor Gavin Newsom and state energy officials are promoting a draft that would revive oil and gas permitting in the State of California.
BofA Securities views this development as a politically motivated pivot, noting perceptions that California Democrats could lose seats in the upcoming state election due to cost-of-living issues.
The firm points to an emerging energy affordability crisis in California, where two refineries have closed since 2020 and two more are reportedly at risk of closure.
Local economists cited by BofA Securities are warning that California gasoline prices could potentially rise to $8.00 per gallon if the Valero Benecia and Phillips 66 Los Angeles refineries were to close.
In other recent news, California Resources Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $1.10, exceeding the forecasted $0.90, and reported revenues of $978 million, outpacing the anticipated $784 million. These results highlight the company’s strong financial performance during the quarter. Additionally, Mizuho raised its price target for California Resources to $64.00 from $61.00, while maintaining an Outperform rating. The investment firm pointed to capital efficiencies and various regulatory and legislative pathways to value creation as reasons for the price target increase. These developments indicate continued positive sentiment from analysts and investors toward California Resources.
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