RBC Capital Downgrades Civitas Resources (CIVI) to Sector Perform

RBC Capital analyst Scott Hanold downgraded Civitas Resources (NYSE: CIVI) from Outperform to Sector Perform with a price target of $40.00 (from $47.00).

The analyst comments: "We move our CIVI rating to Sector Perform from Outperform. We see good asset support for valuation but the confluence of oil market uncertainty along with higher financial leverage likely temper upside potential. Management remains confident in achieving YE25 debt targets, but we think leverage likely stays elevated to peers. Despite the current uncertain oil macro and a more challenged balance sheet, CIVI is not changing its activity pace, which was based on a more constructive oil price expectation. We think reaching the leverage targets now likely requires asset sales and at least $60/bbl (WTI)."

For an analyst ratings summary and ratings history on Civitas Resources click here. For more ratings news on Civitas Resources click here.

Shares of Civitas Resources closed at $28.40 yesterday.

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