Zacks Investment Research downgraded shares of Comstock Resources Inc. (CRK) from NEUTRAL to UNDERPERFORM on December 04, 2014, with a target price of $7.00.
We are concerned over Comstock Resources' declining production levels. The company is facing several operational issues, which if persistent, could dampen volumes further. The weak commodity prices also add to the woes. Comstock's gas-dominated reserves/production profile and its geographically concentrated asset base increases the risk level. The rise in net debt/reduction of liquidity associated with the Delaware Basin acquisition also weighs on the valuation. Taking these factors into consideration, we are downgrading Comstock Resources to Underperform from Neutral with a target price of $7.00.
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