On May 30, Barclays analyst Betty Jiang upped California Resources Corporation (NYSE:CRC)’s stock from “Equalweight” to “Overweight,” lifting the price objective to $60.00 from the prior target of $50.00, as reported by The Fly.
Aerial view of an industrial landscape showing the scale of oil and gas operations.
The upgrade stems from the favourable feedback from European investors as well as numerous factors which can enhance California Resources Corporation’s stock value. In particular, the analyst cited the regulatory environment for oil and gas operations in California, which has been becoming more favorable. This can result in growth opportunities for the company, mainly in the carbon management business.
The upgrade exhibits expectations that a more favourable operating environment in California is expected to enable the market to appreciate California Resources Corporation’s strong upstream asset base and the potential value of its unique carbon management business. The company’s integrated strategy, which is dictated by low-decline conventional assets, a scalable carbon management platform, and power solutions, places it well to garner sustainable FCF throughout cycles.
California Resources Corporation expressed optimism regarding the Aera integration, while the focus remains on realizing the $185 million of synergies through the balance of the year.
California Resources Corporation operates as an independent energy and carbon management company.
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