Coterra Energy (CTRA) Updated Price Target - Sept 2

[dan_s]

Coterra Energy price target raised to $43 from $37 at Barclays
On 8-31-2022 Barclays analyst Jeanine Wai raised the firm's price target on Coterra Energy to $43 from $37 and keeps an Equal Weight rating on the shares. The "knee-jerk reaction" to the Alternative Minimum Tax hitting tax "safe-haven" exploration and production names is understandably negative on an absolute basis, but after further analysis it's not as bad as feared as the companies maintain their "top-tier" free cash flow yields, Wai tells investors in a research note.

At the time of this post CTRA was trading for $30.39, which compares to my valuation of $45.00.

I updated my forecast/valuation model for CTRA this morning and I am now estimating that 2022 cash dividends will total $3.03, based on the Company's fixed + variable dividend policy. They also have a well-funded stock repurchase plan underway.