Comstock Resources (CRK) Update - Nov 5
Posted: Fri Nov 05, 2021 3:37 pm
Mizuho Securities analyst Vincent Lovaglio maintained a Buy rating on Comstock Resources (CRK) on November 2 and set a price target of $15.00. According to TipRanks.com, Lovaglio is a 5-star analyst with an average return of 31.0% and a 79.7% success rate. Lovaglio covers the energy sector, focusing on stocks such as Continental Resources, Occidental Petroleum, and Southwestern Energy.
TipRanks: Currently, the analyst consensus on Comstock Resources is a Moderate Buy with an average price target of $12.00.
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CRK closed at $9.69 on November 5th.
I have updated my forecast/valuation model for Comstock. It will be posted to the EPG website late today.
I have decided to lower my valuation by $4 to $20/share because I am using a multiple of just 4X annualized operating cash flow per share. My model now gives equal weight to 2021 and 2022 operating cash flow per share, which per my model will be $4.08 in 2021 and $5.92 in 2022.
Comstock still has some "Bad Hedges" to work off in Q4.
They should report a big operating cash flow boost in Q1 2022 that should draw more favorable valuations from the Wall Street Gang.
Vincent Lovaglio is a very good analyst and his price target increase from $9 to $15 should draw some attention and get some of the other "Gang Members" to take a more favorable view of CRK. Sometimes it just takes one good upgrade to change the direction of the herd.
Comstock's balance sheet shows a lot of debt compared to their significantly under-valued assets. Their year-end reserve report will show how grossly under-valued the balance sheet is. Plus (and this is a BIG PLUS), Jerry Jones is the majority owner of CRK's stock. CRK has no near term debt problem, but if the Company needed a loan, every banker in Dallas would be happy to loan the owner of the Dallas Cowboys some money.
CRK should be a double for us within a year.
TipRanks: Currently, the analyst consensus on Comstock Resources is a Moderate Buy with an average price target of $12.00.
-------------------------
CRK closed at $9.69 on November 5th.
I have updated my forecast/valuation model for Comstock. It will be posted to the EPG website late today.
I have decided to lower my valuation by $4 to $20/share because I am using a multiple of just 4X annualized operating cash flow per share. My model now gives equal weight to 2021 and 2022 operating cash flow per share, which per my model will be $4.08 in 2021 and $5.92 in 2022.
Comstock still has some "Bad Hedges" to work off in Q4.
They should report a big operating cash flow boost in Q1 2022 that should draw more favorable valuations from the Wall Street Gang.
Vincent Lovaglio is a very good analyst and his price target increase from $9 to $15 should draw some attention and get some of the other "Gang Members" to take a more favorable view of CRK. Sometimes it just takes one good upgrade to change the direction of the herd.
Comstock's balance sheet shows a lot of debt compared to their significantly under-valued assets. Their year-end reserve report will show how grossly under-valued the balance sheet is. Plus (and this is a BIG PLUS), Jerry Jones is the majority owner of CRK's stock. CRK has no near term debt problem, but if the Company needed a loan, every banker in Dallas would be happy to loan the owner of the Dallas Cowboys some money.
CRK should be a double for us within a year.