Crescent Energy: Wells Fargo Analyst Predicts Quarterly Beat but Cautions on Cash Flow

Wells Fargo's Roger Read raised their price target on Crescent Energy Co (NYSE: CRGY) by 5.3% from $19 to $20 on April 22, 2024. The analyst maintained their Strong Buy rating on the stock, according to a note released ahead of the company's Q1 2024 earnings report, expected on May 8, 2024.

In the note, Read predicted that Crescent's quarterly production and EBITDA would exceed expectations. However, they also anticipated that any positive performance in these areas would be offset by free cash flow and Capex misses. As a result, Wells Fargo adjusted their Q1 EPS estimate, taking into account weaker gas benchmark pricing and lower oil ratio assumptions, while increasing their Capex and production estimates.

Currently, 71.4% of top-rated analysts rate CRGY as a Strong Buy or Buy, while 28.6% consider it a Hold. There are no analysts who recommend or strongly recommend selling the stock. This indicates a generally positive sentiment towards Crescent Energy among analysts.

Since the company's last quarterly report on December 31, 2023, CRGY's stock price has experienced a decline of 16.6%. On a year-over-year basis, the stock is down 5.5%. During this period, CRGY has underperformed the S&P 500, which has seen a decrease of 21.1%.

Wells Fargo analyst Roger Read has been ranked by WallStreetZen in the top 2% out of 4,559 Wall Street analysts. With an average return of 11% and a 62.6% win rate, Read specializes in the Industrials and Consumer Cyclical sectors, among others.

Crescent Energy Company, founded in 2020, is an oil and gas exploration and production company with assets in proven basins across the United States. These include the Eagle Ford, Rockies, Barnett, Permian, Mid-Con, and other regions. The company's headquarters are located in Houston, Texas.

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