California Resources Corp Stock Price Declines 3.2% Amidst Market Volatility

Shares of California Resources Corp (CRC) fell 3.2% on Jul 21 to $49.62, down from its previous close of $51.26. The stock is 17.86% below its 52-week high and 60.22% above its 52-week low. Analysts forecast an average target price of $59.00 with an upside of 18.90% from the current price. The estimated GF Value for CRC in one year is $44.85, suggesting a downside of 9.61% from the current price.

Shares of California Resources Corp (CRC) experienced a 3.2% drop on July 21, closing at $49.62, down from its previous close of $51.26. The stock is currently trading 17.86% below its 52-week high and 60.22% above its 52-week low. Analysts forecast an average target price of $59.00, representing an upside of 18.90% from the current price. The estimated GF Value for CRC in one year is $44.85, suggesting a downside of 9.61% from the current price [1].

Analyst Sentiment

Analysts have provided mixed opinions on CRC's stock. JPMorgan raised its rating for CRC from Neutral to Overweight, adjusting the price target from $60 to $63. The firm suggests that the current share price undervalues the company's worth when evaluated on a sum-of-the-parts basis [2]. Citigroup, on the other hand, revised its price target to $47.00 while maintaining a Neutral rating. The neutral rating implies that the firm sees the stock as neither a strong buy nor a sell, indicating a balanced perspective on the company's future performance [3].

Key Financial Metrics

CRC delivered a solid quarter, exceeding the Street's expectations with an adjusted EBITDAX of $328 million and free cash flow of $131 million. The company has realized more than 70% of its $235 million in announced annual synergies from the Aera merger, with full target achievement expected by early 2026. CRC maintains a strong balance sheet with leverage below 1x, over $1 billion in liquidity, and nearly $200 million in available cash, providing flexibility for debt reduction and capital investment [2].

Challenges and Opportunities

Despite the positive earnings, CRC faces challenges from a nearly 16% decline in oil prices and a complex regulatory environment in California. The company is navigating ongoing litigation related to the Kern County EIR and the need for multiple permitting avenues. However, CRC's strong hedge portfolio and diversified revenue stream provide visibility into near-term cash generation, supporting debt service and shareholder returns [2].

Conclusion

The recent decline in CRC's stock price reflects a mix of analyst sentiment and market conditions. While some analysts remain optimistic about the company's prospects, others have adopted a more cautious stance. Investors should closely monitor CRC's ability to navigate regulatory challenges and achieve full synergy targets from the Aera merger.

References

[1] https://www.gurufocus.com/news/2976785/jpmorgan-boosts-california-resources-crc-price-target-amid-valuation-concerns-crc-stock-news
[2] https://www.ainvest.com/news/california-resources-citigroup-raises-pt-47-maintains-neutral-rating-2507/
[3] https://www.marketbeat.com/stocks/NYSE/CRC/forecast/