UBS Signals Major 2026 Turning Point for Coterra Energy (CTRA) Citing Operational Efficiency and Market Recovery

Coterra Energy Inc. (NYSE:CTRA) is one of the most profitable value stocks to invest in right now. On December 12, UBS analyst Josh Silverstein raised the firm’s price target on Coterra Energy to $33 from $32 with a Buy rating on the shares. UBS is signaling a major turning point for the Energy sector in 2026, predicting a robust recovery after 3 years of stagnant returns. The firm’s 2026 outlook suggests that the sector is primed for a breakout, supported by improving supply-demand balances for oil and natural gas, value-generating M&A activity, and gains in operational and CapEx efficiency.

On the same day, Mizuho raised the firm’s price target on Coterra Energy to $36 from $33 with an Outperform rating on the shares. In a research note detailing its 2026 outlook for the E&P sector, Mizuho updated its ratings and argued that the industry holds underappreciated value despite prevailing negative sentiment caused by oil oversupply and high gas storage. The firm anticipates that long-term fundamentals will begin to materialize in 2026.

In Q3 2025, Coterra Energy’s production levels exceeded guidance by ~2.5% across all categories. The company reported $1.7 billion in pre-hedge oil and gas revenues, with oil production contributing 57% of that total. Oil production rose to an average of 11,300 barrels per day, a 7% increase from the previous quarter, while NGL production reached an all-time high of 136,000 barrels per day. These strong results led Coterra to increase its full-year 2025 production guidance to 777 MBoe per day and its natural gas guidance to 2.95 Bcf per day, representing a 5% and 6% increase, respectively, from initial projections.

Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas company that explores, develops, and produces oil, natural gas, and natural gas liquids in the US.

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