Demystifying California Resources: Insights From 5 Analyst Reviews

In the latest quarter, 5 analysts provided ratings for California Resources CRC, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for California Resources, presenting an average target of $63.6, a high estimate of $70.00, and a low estimate of $60.00. Experiencing a 2.65% decline, the current average is now lower than the previous average price target of $65.33.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of California Resources by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to California Resources. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of California Resources compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of California Resources's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into California Resources's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on California Resources analyst ratings.

All You Need to Know About California Resources

California Resources Corp is an independent oil and natural gas exploration and production company operating properties exclusively within California. It provides affordable and reliable energy in a safe and responsible manner, to support and enhance the quality of life of Californians and the local communities in which the company operates. It has some of the lowest carbon intensity production in the United States and is focused on maximizing the value of its land, mineral, and technical resources for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects. CRC has a large portfolio of lower-risk conventional opportunities in the following California oil and gas basins: San Joaquin, Los Angeles, Ventura, and Sacramento.

Key Indicators: California Resources's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, California Resources faced challenges, resulting in a decline of approximately -24.72% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -3.31%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): California Resources's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.06%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): California Resources's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.56%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.32, California Resources adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.