Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - Wells Fargo raised its price target on Coterra Energy (NYSE:CTRA) to $33.00 from $32.00 on Thursday, while maintaining an Overweight rating on the stock. The $18.5 billion energy company, currently trading at an attractive P/E ratio of 11.5x, appears undervalued according to InvestingPro analysis.
The investment bank noted that Coterra is making progress in resolving recent challenges in the Harkey shale. Despite potential risks to oil production trajectory in the second half of the year, Wells Fargo indicated that management remains confident about a strong fourth-quarter ramp-up as key wells come online. The company’s operational stability is reflected in its low beta of 0.31, making it one of the less volatile stocks in the energy sector.
Wells Fargo adjusted its third-quarter 2025 estimates for Coterra, reflecting higher production volumes and lower operating expenses, partially offset by lower commodity price realizations. The bank increased its fiscal year 2025 total production estimate to 770.5 thousand barrels of oil equivalent per day, including 160.5 thousand barrels per day of oil.
At recent strip prices, Wells Fargo forecasts free cash flow generation of $2.11 billion for fiscal year 2025 and $2.38 billion for fiscal year 2026.
The bank remains constructive on Coterra Energy due to its diversified commodity mix and attractive valuation, supporting the decision to maintain an Overweight rating while raising the price target.
In other recent news, Coterra Energy Inc. reported its Q2 2025 earnings, which exceeded revenue forecasts. The company achieved an adjusted earnings per share (EPS) of $0.48, aligning with analysts’ expectations. Notably, Coterra Energy’s revenue reached $1.97 billion, surpassing the anticipated $1.73 billion. These results reflect positively on the company’s financial performance for the quarter. The earnings announcement led to a positive market reaction. The stock experienced a modest increase in regular trading, followed by a more significant rise in pre-market trading the subsequent day. This performance highlights the company’s ability to exceed market revenue projections, a key factor for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.