Piper Sandler lowers Civitas Resources stock price target to $52 on production outlook

Investing.com - Piper Sandler has reduced its price target on Civitas Resources (NYSE:CIVI) to $52.00 from $54.00 while maintaining an Overweight rating on the stock. The stock, currently trading at $32.10, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $30 to $53.

The adjustment follows the energy company’s second-quarter 2025 results and subsequent analyst discussions with management about production forecasts and financial expectations. InvestingPro data reveals that 7 analysts have revised their earnings downwards for the upcoming period, while the company maintains a strong gross profit margin of 71%.

Piper Sandler is revising its second-half 2025 and fiscal year 2026 estimates, adjusting fiscal year 2025 oil production to the midpoint of guidance and total production to the low end of the company’s projected range.

The firm has also trimmed fiscal year 2026 production estimates to align more closely with maintenance volumes following Civitas’ DJ Basin divestiture.

Civitas Resources is expected to face higher interest expenses in fiscal year 2025, though the company does not anticipate becoming a cash taxpayer until after fiscal year 2027, according to Piper Sandler’s research note.

In other recent news, Civitas Resources Inc. reported its earnings for the second quarter of 2025, surpassing analysts’ expectations for earnings per share (EPS). The company reported an EPS of $1.34, exceeding the forecasted $1.11, which represents a 20.72% surprise. Despite this positive earnings performance, Civitas Resources experienced a slight shortfall in revenue for the quarter. The earnings results have been a focal point for investors, given the company’s ability to outperform EPS forecasts. These developments have drawn attention from the investment community, highlighting Civitas Resources’ financial performance in the recent quarter.

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