Valued at a market cap of around $17.9 billion, Texas-based Coterra Energy Inc. (CTRA) is a diversified energy company. The company is involved in the development, exploration, and production of natural gas (NGU24), natural gas liquids, and oils (CLU24).
Shares of this oil and gas producer have significantly underperformed the broader market over the past 52 weeks. CTRA has declined 15.3% over this period, while the broader S&P 500 Index ($SPX) has rallied 18.5%. In 2024 alone, shares of Coterra are down 8.5%, compared to SPX's 12.1% gain on a YTD basis.
Zooming in further, CTRA has also lagged behind the US Oil & Gas Explor & Prod iShares ETF's (IEO) 7.5% decline over the past 52 weeks.
Shares of Coterra Energy closed down 5.1% following its Q2 earnings release on Aug. 1 due to weaker-than-expected financial performance. The company missed analysts' profit estimates, mainly due to a significant drop in natural gas prices. Additionally, despite an increase in total production, natural gas production declined, and the rise in operating expenses offset the higher operating revenues, further dampening investor sentiment.
For the current fiscal year, ending in December, analysts expect CTRA's EPS to decline 7.8% year over year to $2.02. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the past four quarters while missing on two occasions.
Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than three months before, with 15 analysts suggesting a "Strong Buy."
On Aug. 2, Scotiabank’s analyst Paul Cheng upheld a "Buy" rating on Coterra Energy and set a price target of $35.
The mean price target of $33.62 represents a premium of 39.4% to CTRA’s current levels. The Street-high price target of $41, implies an impressive potential upside of 70.1% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
