Piper Sandler has revised its price target for Civitas Resources (CIVI, Financial), lowering it from $66 to $62 while maintaining an Overweight rating. This adjustment comes as the firm navigates a challenging market environment characterized by trade tensions and macroeconomic uncertainty, coupled with a rise in OPEC+ oil production. Additionally, the current period is marked by complexities in seasonal gas markets.
Despite these challenges, Piper Sandler identifies potential opportunities in volatile periods for companies like Civitas, which possess extensive low-cost inventories and robust balance sheets. However, the broader sector is also affected by reversion and market positioning, factors that have influenced short-term performance. Consequently, Piper Sandler expresses a slight preference for oil over gas as the first quarter approaches.
