On December 26, Siebert Williams Shank & Co. reaffirmed its Hold rating on Civitas Resources, Inc. (NYSE:CIVI). Gabriele Sorbara, an analyst at the firm, maintained a price target of $29 for the shares. The target suggests a 12.5% upside from current levels. The stock is trading slightly below the lowest Wall Street price target of $27.
Earlier, on December 18, the company satisfied a major regulatory requirement to close its pending merger with SM Energy Company. It received an early termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. This approval reduces antitrust uncertainty surrounding the transaction. It represents a key milestone towards the deal’s completion.
Analysts have pointed out the limited upside in the stock since the merger was first announced on November 2. The valuation is expected to be mainly tied to the merger deal until completion.
Civitas Resources, Inc. operates as a production and exploration company. It focuses on the production, development, and acquisition of crude oil and associated liquids-rich natural gas. The company was founded in 2010 and is headquartered in Denver, Colorado.