Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Piper Sandler raises Chord Energy shares target citing strong performance

EditorEmilio Ghigini
Published 2024-05-24, 07:38 a/m
© Reuters.
CHRD
-

On Friday, Piper Sandler adjusted its price target on Chord Energy Corp (NASDAQ:CHRD) shares, increasing it slightly to $233 from the previous $231, while maintaining an Overweight rating on the stock.

The firm's analysis highlighted Chord Energy's resilient production figures amidst a general decline in basin well performance over the past few years.

According to the firm, while the overall basin well performance has seen a regression since FY20, with six-month oil cumulative production figures showing a downward trend from 148 thousand barrels (mbbls) in FY20 to 130 mbbls in FY23, Chord Energy has managed to maintain steady quarter-over-quarter results into the fourth quarter of 2023. The three-month oil cumulative production stood at 72 mbbls for the company, demonstrating its ability to sustain output levels.

In contrast to Chord Energy's stable production, other major operators in the basin have reported weaker productivity. Notably, Marathon Oil (NYSE:MRO) experienced a year-over-year productivity gain in the Hector area, with four out of 23 completions year-to-date being allocated back to the Myrmidon area.

Piper Sandler expressed confidence in Chord Energy's prospects, reiterating its Overweight rating and raising the price target to $233. The firm believes that the company is poised for a positive re-rating compared to its small-to-midsize (SMID) peer group, citing strong operational results and improvements in capital efficiency, particularly following the acquisition of ERF.

InvestingPro Insights

As Chord Energy Corp (NASDAQ:CHRD) continues to attract analyst interest, recent data from InvestingPro underscores the company's financial stability and market position. With a market capitalization of $7.36 billion and a price-to-earnings (P/E) ratio that stands at an attractive 7.91, the company is trading near its 52-week high, which indicates strong investor confidence. Additionally, Chord Energy's revenue growth has been robust, with a 5.11% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 22.17% in Q1 2024.

InvestingPro Tips reveal that analysts have recently revised their earnings upwards for the upcoming period, which may be an indicator of Chord Energy's continued strong performance. Moreover, the company's stock is known to trade with low price volatility, providing a potentially stable investment option. For investors seeking detailed analysis and more such insights, InvestingPro offers additional tips on Chord Energy, and by using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

Furthermore, Chord Energy's operational efficiency is reflected in its gross profit margin of 52.13% over the last twelve months as of Q1 2024, and an operating income margin of 31.64%, signaling strong profitability and management effectiveness. Investors looking to delve deeper into Chord Energy's financials and operational metrics can find an array of additional InvestingPro Tips to guide their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.