In a report released yesterday, William Janela from Mizuho Securities maintained a Hold rating on Crescent Energy Company Class A (CRGY – Research Report), with a price target of $13.00.
William Janela has given his Hold rating due to a combination of factors concerning Crescent Energy Company Class A’s recent performance and future prospects. Janela acknowledges the positive operational momentum of CRGY, particularly in the Uinta and acquired Western Eagle Ford assets, which has led to a modest increase in the 2024 volume guidance without a corresponding rise in capital expenditure. Moreover, the company has improved its trading liquidity, with public float increasing to approximately 63% of shares outstanding, which is gradually aligning with its peers. Despite these positive developments, the stock has underperformed in comparison to its peers year-to-date, which may contribute to Janela’s conservative rating.
From a valuation standpoint, CRGY trades at a slight discount on 2024 free cash flow to enterprise value compared to peers but aligns more closely in the 2025 estimates. Additionally, the stock’s enterprise value to EBITDX multiple is a full turn lower than peers for 2024 estimates but converges in the following year. While the company’s first-quarter results surpassed consensus expectations, Janela’s valuation model suggests that the current stock price fairly reflects Crescent Energy’s relative valuation. This balance of positive operational results against a fair but not compelling valuation likely underpins Janela’s decision to rate CRGY with a Hold.
In another report released on May 6, Jefferies also maintained a Hold rating on the stock with a $13.00 price target.
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.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
