Piper Sandler Initiates Coverage of Crescent Energy (CRGY) Stock With a Buy

Crescent Energy Company (NYSE:CRGY) is one of the Most Undervalued Stocks Under $10 to Buy Now. Piper Sandler analyst Mark Lear initiated coverage of the company’s stock with a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating Crescent Energy Company (NYSE:CRGY)’s strategic positioning and growth potential. As per the analyst, the company continues to actively consolidate the Eagle Ford, which is a mature but fragmented oil shale basin, with significant acquisitions. This strategy enabled the company to expand its scale and enhance high-return inventory, placing it as a leading player in the region, possessing the potential to further double its size via M&As.

Furthermore, the firm noted that Crescent Energy Company (NYSE:CRGY)’s robust hedge book and cash-generative production base offer operational flexibility, enabling it to navigate commodity price volatility while, at the same time, maintaining FCF generation. Overall, considering the balanced capital return framework as well as disciplined balance sheet management, Crescent Energy Company (NYSE:CRGY) demonstrates an investment opportunity with a favorable risk-reward profile for investors planning oil-weighted exposure and embedded gas optionality, added the analyst.

Hotchkis & Wiley, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Crescent Energy Company (NYSE:CRGY) is an independent Exploration and Production (E&P) company operating in the Eagle Ford and Uinta Basin. The company has been a successful acquiror and integrator of E&P assets at attractive prices. The company’s shares moved higher in the quarter following solid Q3 earnings and the completion of the SilverBow acquisition. We continue to like the prospects for the company which trades at a very attractive valuation.”

While we acknowledge the potential of CRGY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.