UBS Signals Major 2026 Turning Point for Coterra Energy (CTRA) Citing Operational Efficiency and Market Recovery

Coterra Energy Inc. (NYSE:CTRA) is one of the most profitable value stocks to invest in right now. On December 12, UBS analyst Josh Silverstein raised the firm’s price target on Coterra Energy to $33 from $32 with a Buy rating on the shares. UBS is signaling a major turning point for the Energy sector in 2026, predicting a robust recovery after 3 years of stagnant returns. The firm’s 2026 outlook suggests that the sector is primed for a breakout, supported by improving supply-demand balances for oil and natural gas, value-generating M&A activity, and gains in operational and CapEx efficiency.

On the same day, Mizuho raised the firm’s price target on Coterra Energy to $36 from $33 with an Outperform rating on the shares. In a research note detailing its 2026 outlook for the E&P sector, Mizuho updated its ratings and argued that the industry holds underappreciated value despite prevailing negative sentiment caused by oil oversupply and high gas storage. The firm anticipates that long-term fundamentals will begin to materialize in 2026.

UBS Signals Major 2026 Turning Point for Coterra Energy (CTRA) Citing Operational Efficiency and Market Recovery

In Q3 2025, Coterra Energy’s production levels exceeded guidance by ~2.5% across all categories. The company reported $1.7 billion in pre-hedge oil and gas revenues, with oil production contributing 57% of that total. Oil production rose to an average of 11,300 barrels per day, a 7% increase from the previous quarter, while NGL production reached an all-time high of 136,000 barrels per day. These strong results led Coterra to increase its full-year 2025 production guidance to 777 MBoe per day and its natural gas guidance to 2.95 Bcf per day, representing a 5% and 6% increase, respectively, from initial projections.

Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that explores, develops, and produces oil, natural gas, and natural gas liquids in the US.

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