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On Monday, Piper Sandler analysts initiated coverage on Crescent Energy stock (NYSE: CRGY) with an Overweight rating and a price target of $14.00, representing significant upside from the current price of $9.03. According to InvestingPro data, analyst targets range from $10 to $20, with 5 analysts recently revising their earnings expectations upward. This move highlights the company’s strategic focus on expanding its presence in the Eagle Ford, a mature oil shale basin.
Crescent Energy has completed $3 billion in acquisitions over the past two years, contributing to impressive revenue growth of 31.6% in the last twelve months. The company aims to double its size through further acquisitions, though InvestingPro analysis indicates it operates with a significant debt burden of $3.6 billion. The analysts at Piper Sandler see Crescent Energy as well-positioned to leverage counter-cyclical mergers and acquisitions opportunities.
The company is also shifting its focus towards gas activity, which aligns with the favorable gas macro environment. Piper Sandler analysts believe Crescent Energy’s strong hedge book will help manage leverage even in a weaker oil price environment.
Piper Sandler analysts view Crescent Energy’s attractive valuation, strong total shareholder return, and gas optionality in a robust regional market as compelling factors for investment.
In other recent news, Crescent Energy reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.56, against the forecasted $0.48. The company also exceeded revenue projections, reporting $950.17 million compared to the expected $941.57 million. Crescent Energy achieved record production levels, reaching 258,000 barrels of oil equivalent per day. Capital expenditures for the quarter were lower than anticipated at $208 million, contributing to a strong financial position with an adjusted EBITDA of $530 million. Approximately 60% of the company’s 2025 oil and natural gas production is hedged, providing some stability against market volatility.
Analysts from Raymond (NSE:RYMD) James have maintained a Strong Buy rating for Crescent Energy, with a price target of $16.00, following the company’s performance that met production expectations and exceeded capital expenditure forecasts. The firm highlights Crescent Energy’s robust free cash flow to enterprise value yield of 12% for 2025, compared to an average of 7% among small-cap peers. Crescent Energy’s capital expenditure is expected to peak at $275 million in the second quarter of 2025, with a total capex forecast for the year slightly above street consensus. Looking ahead, the company expects oil production to increase by low to mid-single digits, maintaining a stable growth outlook.
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