Comstock Resources (CRK) saw its stock plummet 5.03% in pre-market trading on Thursday, despite reporting better-than-expected second-quarter results. The sharp decline comes as UBS lowered its price target for the energy company, maintaining a Sell rating on the shares.
Comstock Resources reported Q2 adjusted earnings of $0.13 per share, surpassing analysts' expectations of $0.09 per share and marking a significant turnaround from the $0.20 loss per share in the same period last year. The company's revenue for the quarter ended June 30 also impressed, coming in at $470.3 million, well above the $416.4 million forecast by analysts and nearly doubling the $246.8 million reported a year earlier.
However, the positive earnings report was overshadowed by UBS's decision to lower its price target on Comstock Resources from $20 to $18 while maintaining a Sell rating. The investment bank noted that the company's Q2 report "skewed negatively," which likely contributed to investor concerns and the subsequent stock sell-off. This bearish stance from UBS appears to have outweighed the company's strong quarterly performance, leading to the significant pre-market decline in Comstock Resources' stock price.
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