Chord Energy stock target cut to $136 by TD Cowen

On Monday, Chord Energy Corp (NASDAQ:CHRD), currently trading at $119.39 and near its 52-week low of $109.59, had its price target reduced by TD Cowen to $136 from the previous $155, while the firm maintained a Hold rating on the stock. According to InvestingPro analysis, the company appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report. TD Cowen's analyst provided insights into Chord Energy's performance and projections, noting the company's adherence to its three-year plan aimed at maintaining oil volumes at 152-153 thousand barrels per day (MBD) with an anticipated capital expenditure of approximately $1.4 billion.

Chord Energy is expected to have produced approximately 153 MBD of oil in the fourth quarter, slightly above the midpoint of its guidance range of 149.5-154.5 MBD. This production level would bring the company's total volumes to around 266 thousand barrels of oil equivalent per day (MBOED), aligning with the midpoint of its guidance range of 261.5-270.1 MBOED. These figures are consistent with Street estimates.

For the current year, TD Cowen estimates Chord Energy's oil production to be just over 152 MBD, which is in line with the consensus. However, the total production estimate of 258 MBOED is 3% below the consensus, attributed to lower gas volumes.

TD Cowen's estimates for the fourth quarter include an adjusted EPS of $2.83, an adjusted EBITDAX of $625 million, and a dividend per share (DCPS) of $9.20. These figures are respectively 1% below, 2% above, and in line with the consensus estimates of $2.85 for adjusted EPS, $614 million for adjusted EBITDAX, and $9.22 for DCPS. Notably, InvestingPro data shows the company maintains an attractive 8.64% dividend yield and trades at a modest P/E ratio of 6.13, with strong financial health metrics.

The reduction in the price target to $136 per share reflects a 20% discount to the firm's net asset value (NAV) for Chord Energy. The Hold rating remains unchanged as the company continues to execute its operational plans. With an EV/EBITDA of 3.69 and market capitalization of $7.32 billion, investors can access deeper financial analysis and 10 additional ProTips through InvestingPro's detailed research platform.

In other recent news, Chord Energy has been the subject of several analyst reports. Piper Sandler reiterated an Overweight rating, adjusting the price target slightly from $194.00 to $193.00. They expect a turnaround for Chord Energy in fiscal year 2025, driven by a strategic shift towards developing longer lateral wells and the recent acquisition of Enerplus (NYSE:ERF). Meanwhile, RBC Capital Markets sustained their positive stance with an Outperform rating, despite reducing the price target from $185.00 to $180.00. They anticipate Chord Energy will aggressively pursue stock buybacks, considering the recent weakness in its shares.

However, BofA Securities downgraded Chord Energy's stock from Buy to Neutral, alongside a significant reduction in the price target from $208.00 to $138.00, due to the company's high leverage to oil prices. The potential for four-mile laterals remains a positive catalyst for Chord Energy's stock, according to BofA Securities.

In addition, Chord Energy has confirmed its $3 billion borrowing base and extended its loan options, providing the company with continued financial flexibility until December 1, 2025. These recent developments provide an insight into the company's financial arrangements and ongoing commitments.

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