Could Civitas Resources (CIVI) Finally Take Off After Regulatory Clarity?

Civitas Resources, Inc. (NYSE:CIVI) is one of the 10 cheapest oil and gas stocks to invest in. Siebert Williams Shank & Co reaffirmed its Hold rating on the stock on December 26. Gabriele Sorbara, an analyst at Siebert Williams Shank & Co., also maintained the price target of $29 for the shares. Based on the current levels, the target price indicates 12.5% further upside. The stock is currently trading slightly below the lowest Wall Street price target of $27.

The company satisfied a major regulatory requirement to close its pending merger with SM Energy Company on December 18. It received an early termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. This approval reduces antitrust uncertainty surrounding the transaction and represents a key milestone towards the deal’s completion. Additionally, this clearance also supports Civitas Resources’ plans to strengthen its competitive standing and operational footprint across the U.S. oil and gas sector.

It is worth noting that since the merger was first announced on November 2, analysts pointed out the limited upside in the stock, as the valuation is expected to be mainly tied to the merger deal until completion.

Civitas Resources, Inc. (NYSE:CIVI) operates as a production and exploration company. The company focuses on the production, development, and acquisition of crude oil and associated liquids-rich natural gas. Civitas Resources was founded in 2010 and is headquartered in Denver, Colorado.

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