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TD Cowen Maintains Bullish View on Civitas (CIVI) with a Trimmed Target

Civitas Resources Inc. (NYSE:CIVI) is one of the deep value stocks to buy according to analysts. On August 7, TD Cowen analyst David Deckelbaum reiterated a Buy rating on Civitas Resources, lowering his price target to $37 from $42.

The analyst highlighted that while production came in slightly below expectations, the company delivered stronger-than-anticipated financial results. EBITDAX was 2% above consensus, and free cash flow outperformed by 36%, underscoring its operational efficiency.

A worker inspecting a state-of-the-art rig in the Permian Basin region.

Deckelbaum also pointed to Civitas’s decision to divest non-core assets as a positive step, allowing management to sharpen its focus and improve efficiency. At the same time, the company continues to emphasize shareholder returns, with plans to allocate half of free cash flow to buybacks and the rest toward debt reduction.

The company’s strong hedging program adds further stability to cash flows. In the analyst’s view, this balanced approach to capital management supports confidence in Civitas’s long-term positioning despite near-term production variability.

Civitas Resources Inc. (NYSE:CIVI) is an independent oil and gas producer with operations in the DJ Basin of Colorado and the Permian Basin of Texas and New Mexico, where it focuses on acquiring, developing, and producing crude oil and 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.

READ NEXT: 10 Best Large Cap Tech Stocks to Buy Now and 10 Best Big Tech Stocks to Buy Right Now.

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

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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