A 15% hit to shares of Coterra Energy Inc (NYSE: CTRA) since mid-October is an opportunity to invest in a quality name at a deep discount, says Jim Cramer.
Cramer added to Coterra Energy stock todayThe famed investor added to his position in the hydrocarbon exploration company on Tuesday. His Charitable Trust now owns a total of 2,600 shares of Coterra Energy.
Cramer is bullish primarily because $CTRA has gained only 4.0% since mid-December even though the natural gas futures have rallied a whopping 33% during the same time.
He’s constructive on Coterra Energy stock even though the New York listed firm missed Street estimates for revenue in its third financial quarter by some $27 million.
The energy stock traded at a high of $35 in May of 2022.
Watch here: https://www.youtube.com/embed/En1aO9WGKdw?feature=oembedWhy else is Cramer bullish on Coterra Energy?Jim Cramer – who also hosts Mad Money on CNBC – remains positive on Coterra Energy stock also because oversupply is no longer a concern.
Reasons other than a surge in natural gas that he cited for his view on the Houston-headquartered firm include expectation of an exceptionally cold weather in the coming week.
Lower temperatures often mean higher utility bills, but PG&E says regulator-approved rate changes will account for lower natural gas prices than last winter. But an economist says other CPUC-approved rate changes will cost customers more than before. https://t.co/wW9BlO50LU pic.twitter.com/VsHFqutOOG
— ABC7 News (@abc7newsbayarea) January 9, 2024Jim Cramer is confident that the company’s management will continue to be efficient in terms of capital expenditures in pursuit of optimising shareholder returns in the long run.
Earlier this week, a Bank of America analyst Doug Leggate upgraded shares of Coterra Energy Inc to “buy”. His $31 price target suggests about a 20% upside from here.
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