UBS Highlights Coterra Energy's (CTRA) Capital Efficiency, Boosts Price Target Amid Activist Attention

Coterra Energy Inc. (NYSE:CTRA) ranks among the 9 hot energy stocks to buy. On November 24, UBS increased its price target for Coterra Energy Inc. (NYSE:CTRA) to $32 from $29, retaining a Buy rating on the energy company’s shares. The bank cited Coterra’s upgraded 2026 estimates, which indicate improved capital efficiency, as an important factor for the price target boost.

Coterra Energy Inc. (NYSE:CTRA) expects significantly lower capital expenditures year-over-year while sustaining a 0-5% annual increase in BOE and natural gas output, as well as about 5% annual growth in oil production. The company’s cash return yield forecast of 11.5% for 2026 reflects a strong commitment to financial success. In any event, the company intends to publish detailed 2026 guidance in February, emphasizing sustainable growth and operational flexibility.

UBS also stated that Coterra Energy Inc. (NYSE:CTRA) has recently drawn the attention of activist investors due to issues with capital allocation and corporate governance, factors that are influencing the company’s valuation.

Coterra Energy Inc. (NYSE:CTRA) is an independent energy company focused on the development, exploration, and production of oil, natural gas, and natural gas liquids (NGLs) within the continental United States.

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