Crescent Energy Company Class A (CRGY – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Hanwen Chang from Wells Fargo maintained a Buy rating on the stock and has a $20.00 price target.
Hanwen Chang’s rating is based on a comprehensive analysis of Crescent Energy Company Class A, considering anticipated financial performance and market positioning. Chang anticipates the company’s production and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to surpass expectations in the first quarter, despite a forecasted shortfall in free cash flow (FCF) and increased capital expenditures (capex). Furthermore, adjustments to the company’s financial model reflect updated projections in production, operating costs, and price realization, taking into account external factors such as weaker gas benchmark pricing and a lower oil ratio.
Additionally, the company is seen to be achieving a critical mass in terms of market presence, which could be appealing to long-term value investors. This is highlighted by improvements in trading liquidity and an increase in research coverage. The company’s M&A strategy, with a focus on the Eagle Ford and Rockies regions and a preference for assets with favorable economics and manageable regulatory risks, adds to the positive outlook. Moreover, despite the short-term nature of Crescent Energy’s service contracts, there is potential for cost savings that may offset the impacts of increased frac intensity. These elements combine to support Chang’s Buy rating for Crescent Energy’s stock.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRGY in relation to earlier this year.
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Crescent Energy Company Class A (CRGY) Company Description:
Crescent Energy Co is a diversified, well capitalized, U.S. independent energy company with a portfolio of assets in key proven basins across the lower 48 states.
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