On Wednesday, Mizuho Securities updated its financial outlook for Chord Energy Corp (NASDAQ: CHRD), leading to an increased stock price target on the company's shares. The target has been set at $195.00, rising from the previous figure of $189.00, while the firm continues to endorse a Buy rating for the energy company.
The adjustment comes as Mizuho revises its projections to include year-end 2023 reserves, revised type curves, and the latest guidance for 2024. The analysis also factors in the anticipated acquisition of ERF, which is expected to be finalized around midyear.
The acquisition is seen as a strategic move that would enhance Chord Energy's operational scale within its basin, increase its market presence with a market cap exceeding $10 billion, and support its ability to deliver above-average cash returns while keeping financial leverage below the industry average.
Despite the positive outlook on the acquisition, Chord Energy's stock performance has not mirrored that of its peers. Since the announcement of the deal, the company's shares have underperformed, showing a 2% decline compared to a 6% increase observed in the stocks of small to mid-sized exploration and production (E&P) companies.
Mizuho's endorsement of a Buy rating is maintained alongside the raised price target, reflecting confidence in Chord Energy's strategic initiatives and its potential for growth. The firm's valuation of the stock at $195 per share represents an expectation of upward movement for Chord Energy in the stock market, in the wake of its operational and financial strategy updates.
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