Comstock downgraded at Imperial Capital amid weak nat gas outlook

|About: Comstock Resources Inc. (CRK)|By:, SA News Editor

Comstock Resources (CRK +4.2%) is higher despite a downgrade to In-line from Outperform with a $0.75 price target, cut from $1.50, at Imperial Capital.

With natural gas prices falling precipitously in the last month - the front month contract has declined $0.50 to about $1.70/mcf since Feb. 8 - the firm believes the short-term macro outlook will severely impact CRK's liquidity.

With CRK essentially un-hedged and with capital markets likely closed to the company, Imperial believes CRK may need to commit to either a Haynesville JV or divest assets just to survive until a positive environment for natural gas pricing starts to materialize.

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