UBS Highlights Coterra Energy’s (CTRA) Capital Efficiency, Boosts Price Target Amid Activist Attention

Group 1 - Coterra Energy Inc. (NYSE:CTRA) is recognized as one of the 9 hot energy stocks to buy, with UBS raising its price target from $29 to $32 while maintaining a Buy rating due to improved capital efficiency in 2026 estimates [1] - The company anticipates significantly lower capital expenditures year-over-year, while achieving a 0-5% annual increase in BOE and natural gas output, alongside approximately 5% annual growth in oil production [2] - Coterra's cash return yield forecast of 11.5% for 2026 indicates a strong commitment to financial success, with detailed 2026 guidance expected to be published in February [2] Group 2 - Coterra Energy has attracted the attention of activist investors due to concerns regarding capital allocation and corporate governance, which are impacting the company's valuation [3] - The company is focused on the development, exploration, and production of oil, natural gas, and natural gas liquids (NGLs) within the continental United States [3]