Comstock Resources price target raised to $27 from $24 at Mizuho

Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating on Comstock Resources (NYSE:CRK), currently trading at $24.01 with a market cap of $7.03 billion, while raising its price target to $27.00 from $24.00 on Monday. According to InvestingPro data, analyst targets for CRK range from $12 to $34.

The research firm expects Comstock to report a modest earnings miss for the second quarter of 2025, with slightly softer EBITDAX and free cash flow compared to consensus estimates, primarily due to weaker Haynesville realizations. InvestingPro data shows 4 analysts have recently revised their earnings expectations downward, with the company scheduled to report on July 30, 2025.

Mizuho noted that the upcoming earnings call should focus on updates to Comstock’s BKV CCUS partnership, which management believes will enhance the company’s ability to market its gas to hyperscalers and global LNG buyers seeking low-carbon supply.

The firm also highlighted that it will monitor any commentary on differentials as the LNG ramp continues to support broader gas fundamentals, particularly in Gulf Coast markets.

Despite a midstream outage during the quarter, Comstock’s production and capital expenditures are expected to be at the mid-point of guidance, even with higher TILs compared to the first quarter of 2025.

In other recent news, Comstock Resources reported a strong financial performance for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.18, exceeding the expected $0.14, and reported revenue of $512.8 million, well above the forecasted $417.96 million. This performance was bolstered by a 21% year-over-year increase in oil and gas sales, reaching $405 million. Comstock generated $239 million in operating cash flow and reported an adjusted EBITDAX of $293 million, despite a 17% decrease in production compared to the same period last year.

In other developments, Wolfe Research upgraded Comstock Resources’ stock from Peerperform to Outperform, citing the company’s resource expansion in the Western Haynesville region. The research firm highlighted Comstock’s strategic land acquisitions and successful exploration efforts, which have proven the commercial viability of deeper targets. Wolfe Research set a price target of $34.00, suggesting significant upside potential based on recent industry transactions and the value of Comstock’s legacy portfolio.

Furthermore, Comstock Resources plans to continue its exploration success by drilling 20 wells and turning 15 wells to sales in the Western Haynesville area this year. The company aims to fund this program through operating cash flow, with midstream expenditures projected between $130 million and $150 million. This strategic focus on expanding resources and maintaining strong financial health positions Comstock for continued growth in the energy sector.

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