Street Calls of the Week
Investing.com - UBS raised its price target on California Resources (NYSE:CRC) to $70.00 from $63.00 on Tuesday, while maintaining a Buy rating on the oil and gas producer’s stock. The stock, currently trading at $57.26, has shown strong momentum, up over 10% in the past week. According to InvestingPro data, analysts maintain a Strong Buy consensus with targets ranging from $51 to $73.
The price target increase follows California Resources’ acquisition of BRY, which UBS described as a positive move that demonstrates the company’s commitment to upstream operations within California.
The transaction comes after California Resources’ acquisition of Aera last year, which doubled the company’s upstream footprint and generated significant synergies, positioning CRC as "the natural consolidator" for BRY’s assets.
UBS views the BRY acquisition as accretive across all key metrics, while adding meaningful scale to California Resources’ production and asset base.
The firm reiterated its Buy rating on California Resources stock alongside the price target increase to $70.00 from the previous $63.00.
In other recent news, California Resources announced an all-stock acquisition of Berry Corporation valued at approximately $717 million, which Mizuho views positively due to the anticipated $85 million in annualized synergies. Mizuho subsequently raised its price target for California Resources to $71, maintaining an Outperform rating. Additionally, UBS reiterated a Buy rating and a $63 price target for California Resources following the passage of SB-237 by the California Legislature, which eases restrictions on new upstream permits. BofA Securities also increased its price target for the company to $60, maintaining a Buy rating, as California officials promote a draft to revive oil and gas permitting. Furthermore, Mizuho raised its price target to $64, highlighting capital efficiencies and regulatory pathways as factors for potential value creation. Texas Capital Securities reiterated a Buy rating and $7.50 price target on Berry Petroleum, considering the draft legislation a positive development for both Berry and California Resources. These developments reflect a series of strategic moves and legislative changes impacting California Resources and its market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.