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Wolfe Research upgraded Comstock Resources (NYSE:CRK) stock rating from Peerperform to Outperform on Tuesday, setting a price target of $34.00. The upgrade comes as the $7.75 billion energy company continues to expand its resource base in the Western Haynesville region. The stock has shown remarkable momentum, delivering a 141% return over the past year. According to InvestingPro data, CRK is currently trading near its 52-week high of $26.50.
The research firm cited Comstock’s strategic land acquisitions in the Western Haynesville area, where the company has focused on deeper targets within the previously defined Cotton Valley Lime formation. While the company faces some financial challenges, including a current ratio of 0.4 indicating tight liquidity, Wolfe Research noted that Comstock has led industry efforts in proving the commercial viability of these overlooked deeper targets as technical capabilities have improved. For deeper insights into Comstock’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
Geological data analysis and recent well tests by Comstock indicate resource density that could yield estimated ultimate recoveries (EURs) of 3-4 billion cubic feet per 1,000 feet. This density supports an inventory exceeding 2,000 drilling locations, according to Wolfe Research’s assessment.
The research firm believes Comstock shares can reach approximately $34 per share when benchmarked against recent industry transactions and considering the producing developed proved (PDP) value of the company’s legacy portfolio. This represents significant upside potential from current trading levels.
Comstock Resources has positioned itself as a leader in the Western Haynesville play, with its strategy focused on identifying and developing resources in areas that were previously overlooked by the industry due to technical limitations.
In other recent news, Comstock Resources has reported impressive financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.18, exceeding the projected $0.14, and generated revenue of $512.8 million, significantly higher than the expected $417.96 million. Comstock Resources also experienced a 21% year-over-year increase in oil and gas sales, amounting to $405 million. The company reported an operating cash flow of $239 million and an adjusted EBITDAX of $293 million, underscoring its strong financial health despite a 17% decrease in production compared to the previous year. Additionally, Comstock Resources plans to drill 20 wells and turn 15 wells to sales in the Western Haynesville region, funding these activities through operating cash flow. The company has also announced a partnership with BKV Corporation to explore carbon capture projects, emphasizing its commitment to sustainability. Analyst firms have noted the company’s strategic operational improvements and successful exploration activities, particularly in the Western Haynesville area.
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