Scotiabank Initiates Coverage of Chord Energy Corporation (CHRD) Stock

Chord Energy Corporation (NASDAQ:CHRD) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, Scotiabank initiated coverage of the company’s stock with a “Sector Perform” rating and a price objective of $120. As per the analyst, Chord Energy Corporation (NASDAQ:CHRD) possesses a strong balance sheet with healthy cash flow generation and returns to shareholders. That being said, its inventory length might be a concern. Also, the firm sees limited visibility into Chord Energy Corporation (NASDAQ:CHRD)’s longer-term growth.

Chord Energy Corporation (NASDAQ:CHRD)’s premier Williston Basin position, built with an emphasis on disciplined capital allocation, early adoption of new technologies, and strategic M&A, positions the company in a strong position to fuel continuous improvement amid persistent commodity volatility. Also, the company remains focused on optimizing capital allocation while operating safely and sustainably. Chord Energy Corporation (NASDAQ:CHRD) delivered production volumes and capital better than the anticipations in H1 of the year, thanks to the robust execution, operational efficiencies, lower downtime, and healthy asset performance.

Palm Valley Capital Management, an investment management firm, released its Q2 2025 investor letter. Here is what the fund said:

“The Fund acquired four new names during the second quarter: Healthcare Services Group (ticker: HCSG), Chord Energy Corporation (NASDAQ:CHRD), RPC (ticker: RES), and Papa John’s International (ticker: PZZA).

Chord Energy is an exploration and production (E&P) company in the Williston Basin. As oil prices fell sharply in April, Chord’s stock fell below our valuation of the firm’s proven reserves. We’re fond of Chord’s strong balance sheet, free cash flow, and low-cost oil reserves. In 2024, the company generated $2.35 billion of EBITDA and $1 billion of free cash flow. Since the majority of Chord’s $800 million in debt doesn’t mature until 2033, we believe free cash flow will continue to be used to pay dividends and repurchase stock. Since 2021, Chord has paid $56 per share in dividends (over half the current share price!). With a market cap near $5 billion, we believe Chord is attractively priced relative to cash flow and our net asset valuation.”

While we acknowledge the potential of CHRD 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.