Gerdes Energy upgrades Comstock Resources stock rating to buy

Gerdes Energy Research has upgraded Comstock Resources (NYSE:CRK) stock rating from Neutral to Buy, retaining its price target of $16.00. The firm noted that Comstock Resources has fallen about 19% since September 1st, presenting an opportunity for over 20% equity value upside. The stock is currently trading at $12.92, just 7% above its 52-week low of $12.12.

Analysts believe CRK is slightly overvalued relative to its Fair Value but maintain an attractive P/E ratio of 7.54. Despite these factors, the company's market cap stands at $3.79 billion. The firm highlighted the pending divestitures to SOCAR and Jerry Jones funding venture as net present value neutral. SOCAR will acquire 20% non-operated working interests in Haynesville upstream assets, while Jerry Jones' funding will support drilling and completion costs for 85% of 18 Western Haynesville wells and 80% of nine Legacy Haynesville wells. These transactions are set to close by the end of 2026.