Houston-based Coterra Energy Incorporated (CTRA), with a market cap of $20.8 billion, is a leading diversified energy company founded in 1989. The company develops, explores, and produces oil, natural gas, and natural gas liquids in the U.S. Its operations include the Permian Basin in Texas, the Anadarko Basin in Oklahoma, and the Marcellus Shale in Pennsylvania.
Shares of Coterra have lagged behind the broader market in the last year. While CTRA has surged 14.4% over this time frame, the broader S&P 500 Index ($SPX) is up 28.9%. In 2024, the stock rose 10.5%, compared to SPX’s 11.1% return on a YTD basis.
Narrowing the focus, CTRA has also underperformed the US Oil & Gas Exploration & Production Ishares ETF (IEO). The exchange-traded fund has gained 29.4% over the past year, outperforming CTRA’s return for the period.
Coterra Energy's shares rose following the release of its Q1 earnings results. Despite a significant decline in natural gas (NGM24) prices, the U.S. shale producer beat profit estimates thanks to higher output volumes. The company also announced an increase in its 2024 oil production outlook to 107,000 bopd, up 2.5% from previous projections.
For the current fiscal year, ending in December, analysts expect CTRA’s EPS to decline 16.9% year over year to $1.82. Moreover, the company’s earnings surprise history is mixed. It exceeded the consensus estimate in three of the last four quarters while missing on one other occasion.
Coterra stock has a consensus “Strong Buy” rating overall. Out of 22 analysts covering the stock, 15 recommend a "Strong Buy," one suggests a "Moderate Buy," and six advise "Hold."
The consensus rating has been consistent over the past months.
On May 16, Truist Securities upgraded its rating on Coterra from a "Hold" to a "Buy" rating and raised the price target from $27 to $35, which suggests an upside potential of 25%.
The mean price target of $33.09 suggests an 18.1% premium from current price levels. The Street-high target of $41 represents an upside potential of 46.4%.
On the date of publication, Kritika Sarmah 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.
