Piper Sandler Lifts Civitas Resources (CIVI) PT to $57, Maintains Overweight Rating

Civitas Resources Inc. (NYSE:CIVI) is one of the most undervalued stocks to buy and hold for 3 years. On July 17, Piper Sandler increased the price target for Civitas Resources from $54 to $57, while maintaining an Overweight rating. The firm noted that the exploration and production investment environment remains challenging post-Q2.

This is due to fluctuating oil prices. Simultaneously, strong secular demand trends for natural gas are counteracted by high supplies and inventory builds. Despite these challenges, the long-term outlook for natural gas demand is positive. The sentiment was reinforced by the recent PA Power and Innovation Summit, which saw the announcement of $90 billion in investments for power and data center infrastructure.

Piper Sandler Lifts Civitas Resources (CIVI) PT to $57, Maintains Overweight Rating

An industrial facility emitting natural gas from large pipes, with workers in the foreground.

In Q1 2025, the company announced a $150 million reduction in capital expenditure compared to 2024. The company also implemented a cost optimization and efficiency plan targeting an incremental $100 million in annual free cash flow, with ~40% of this benefiting H2 2025. An oil gathering agreement is expected to contribute an additional $15 million annually to free cash flow.

Civitas Resources Inc. (NYSE:CIVI) is an exploration and production company that focuses on the acquisition, development, and production of crude oil and associated liquids-rich natural gas.

While we acknowledge the potential of CIVI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CIVI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.