KeyBanc reiterates Overweight rating on Crescent Energy stock at $14

Published 26/08/2025, 13:26
KeyBanc reiterates Overweight rating on Crescent Energy stock at $14

Investing.com - KeyBanc has reiterated its Overweight rating and $14.00 price target on Crescent Energy (NYSE:CRGY) following the company’s acquisition announcement of Vital. The target represents significant upside potential from the current price of $9.54, though InvestingPro analysis indicates the stock is currently trading at a high earnings multiple of 80x.

The investment bank updated its estimates to reflect the acquisition, assuming a closing date of January 1, 2026. KeyBanc noted there has been a mixed reaction from clients about Crescent’s pivot to the Permian Basin. The company’s financial position shows a significant debt burden of $3.38 billion, with short-term obligations exceeding liquid assets according to InvestingPro data.

Some clients expressed surprise about the strategic shift, though many acknowledged that having COO Joey Hall, who was hired in May and brings Permian experience, provides some operational reassurance.

KeyBanc’s updated model projects a significant decline in capital expenditure to the Permian in 2026, suggesting steady production declines throughout that year.

While the firm does not currently model asset sales in its projections, it expects announcements regarding potential divestments before the end of 2025.

In other recent news, Crescent Energy’s Q2 2025 earnings report exceeded expectations, with earnings per share reaching $0.43, significantly surpassing the forecasted $0.28. The company’s revenue also came in strong at $897.98 million, slightly above the anticipated $877.82 million. These results highlight Crescent Energy’s robust operational and financial performance. Additionally, Crescent Energy is reportedly in advanced talks to acquire Vital Energy, as initially reported by Reuters. This potential acquisition has been a focal point for investors, reflecting strategic growth ambitions. In a related development, William Blair initiated coverage of Crescent Energy with an Outperform rating. Analyst Neal Dingmann from William Blair noted the company’s focused strategy and diversified assets aimed at enhancing shareholder returns. These developments underscore Crescent Energy’s strategic positioning and potential future trajectory in the industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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