WEBULL

Coterra Energy (CTRA): Reassessing Valuation After Fresh Analyst Buy Ratings and Rising Sector Confidence

Simply Wall St · 1d ago

Multiple Wall Street firms have recently reiterated or launched Buy ratings on Coterra Energy (CTRA), signaling growing confidence in its multi basin strategy and positioning within a still volatile energy tape.

See our latest analysis for Coterra Energy.

That upbeat backdrop helps explain why, at a latest share price of $27.39, Coterra has logged a solid 90 day share price return of 14.22 percent and a 1 year total shareholder return of 13.73 percent. This suggests that momentum in the story is steadily building rather than fading.

If Coterra’s recent run has you thinking more broadly about energy exposure, you might also want to explore aerospace and defense stocks as a way to spot other resilient, cash generating names in the current market.

With analysts seeing roughly 20 to 30 percent upside from here, and Coterra posting steady growth and cash generation, is the market still underestimating its earnings power, or already pricing in the next leg of expansion?

Most Popular Narrative: 15.3% Undervalued

With Coterra shares last closing at $27.39 against a narrative fair value of about $32.32, the valuation case leans firmly toward upside potential.

The deployment of advanced drilling and completion technologies, including successful wellbore redesigns, simul frac fleets, and longer laterals, has reduced per foot costs (notably a 12% YoY cost drop in the Permian) and improved capital efficiency, creating sustainable improvements in net margins and free cash flow.

Read the complete narrative.

Want to see why steady growth expectations, shifting margins and a richer future earnings multiple still point to upside from here? The full narrative unpacks the surprising combination of efficiency gains, reinvestment discipline and long range cash flow math that drives this fair value call.

Result: Fair Value of $32.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent gas price weakness or unresolved operational issues in key basins could quickly erode margins and challenge the current upside narrative.

Find out about the key risks to this Coterra Energy narrative.

Build Your Own Coterra Energy Narrative

If you see the setup differently or would rather dig into the numbers yourself, you can build a complete, personalized view in minutes: Do it your way.

A great starting point for your Coterra Energy research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for your next investing move?

Before the market’s next swing leaves you watching from the sidelines, put Simply Wall Street’s Screener to work and line up your next set of high conviction ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.