TD Cowen Maintains Bullish View on Civitas (CIVI) with a Trimmed Target

Civitas Resources Inc. (NYSE:CIVI) is one of the deep value stocks to buy according to analysts. On August 7, TD Cowen analyst David Deckelbaum reiterated a Buy rating on Civitas Resources, lowering his price target to $37 from $42.

The analyst highlighted that while production came in slightly below expectations, the company delivered stronger-than-anticipated financial results. EBITDAX was 2% above consensus, and free cash flow outperformed by 36%, underscoring its operational efficiency.

Deckelbaum also pointed to Civitas’s decision to divest non-core assets as a positive step, allowing management to sharpen its focus and improve efficiency. At the same time, the company continues to emphasize shareholder returns, with plans to allocate half of free cash flow to buybacks and the rest toward debt reduction.

The company’s strong hedging program adds further stability to cash flows. In the analyst’s view, this balanced approach to capital management supports confidence in Civitas’s long-term positioning despite near-term production variability.

Civitas Resources Inc. (NYSE:CIVI) is an independent oil and gas producer with operations in the DJ Basin of Colorado and the Permian Basin of Texas and New Mexico, where it focuses on acquiring, developing, and producing crude oil and liquids-rich natural gas.

While we acknowledge the potential of CIVI 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.