Civitas Resources (CIVI) updated price targets - Dec 10

[dan_s]

CIVI is grossly oversold because the BOD decided to pay only the Base Dividend of $0.50/share in December. They decided to use the variable portion to buyback stock, which I believe was a smart move since the share price is below book value.

Civitas is a very profitable company with a free cash flow yield over 21%.

Recent CIVI Price Target Updates submitted to TipRanks:
> $79 by Siebert Williams Shank & Co. (rated 5-Star by TipRanks)
> $70 by RBC Capital
> $83 by Piper Sandler
> $68 by JP Morgan

Yield Investors do not like companies that change their dividend policy. It is like changing the rules in the middle of the season. In this case, it has provided a buying opportunity on a very good company. I do expect them to raise the dividend in 2025.

My updated profile on Civitas will be posted to the EPG website late this afternoon.