Civitas Resources: Jefferies maintains Buy, PT down to $48 from $73

Civitas Resources: Jefferies maintains Buy, PT down to $48 from $73

Civitas Resources Inc. (NYSE: CIVI) recently received a continued Buy recommendation from Jefferies, with the investment bank lowering its price target to $48 from $73 [1]. This recommendation comes amid a positive outlook for the company's financial performance.

The average one-year price target for Civitas Resources is currently $95.09, representing a potential upside of 36.46% from its most recent closing price of $69.68 [1]. This optimistic forecast is based on the company's projected annual revenue of $3,243 million, which represents a 3.32% increase compared to the previous year [1].

Moreover, Civitas Resources recently declared a $0.50 dividend per share, which translates to a dividend yield of 2.87% at the current share price [1]. Although this yield is currently below the historical average of 8.80%, it is still considered attractive for income-focused investors.

Institutional sentiment towards Civitas Resources is also positive, with the number of funds holding positions in the company increasing by 6.61% in the last quarter [1]. The total number of shares owned by institutions also increased by 0.91% over the same period.

Despite the generally bullish outlook, it is essential to note that Civitas Resources' dividend growth rate over the past three years has been negative (-0.18%) [1]. This could potentially impact the company's ability to maintain or grow its dividend in the future.

Overall, Jefferies' continued Buy recommendation and the positive institutional sentiment towards Civitas Resources suggest that the company has significant growth potential. However, investors should carefully consider the company's dividend history and growth prospects before making investment decisions.

References:
[1] Fintel. (2023, October 5). Jefferies maintains Civitas Resources Inc. (CIVI) Buy recommendation. Retrieved from https://www.nasdaq.com/articles/jefferies-maintains-civitas-resources-inc-civi-buy-recommendation