Roth MKM Reaffirms Buy on HighPeak (HPK) Despite Weak Q3 Results

Group 1 - HighPeak Energy, Inc. (NASDAQ:HPK) is considered a cheap oil stock under $10, with a consensus Hold rating based on one Buy and one Sell recommendation from analysts [1] - The average 12-month price target for HighPeak is $9.50, with forecasts ranging from $7.00 to $12.00, indicating a potential upside of 51% from the current price of $6.28 [1] - Roth MKM reaffirmed its Buy rating on HighPeak and maintained a price target of $12, following the company's Q3 2025 earnings report [2] Group 2 - HighPeak reported total revenues of $188.86 million for Q3 2025, a decline from $271.58 million in Q3 2024, and missed analyst estimates of $226.48 million [3] - The company experienced a 30% drop in realized oil prices year-over-year to approximately $65 per barrel, contributing to the revenue decline [3] - HighPeak's EPS for the quarter was -$0.15 per diluted share, compared to a profit of $0.35 in the same quarter last year, influenced by a one-time $25.4 million non-cash loss on debt extinguishment [3] Group 3 - Interim CEO Michael Hollis emphasized the company's commitment to facing challenges head-on and maintaining a long-term strategy focused on operating within cash flow and disciplined decision-making [4] - HighPeak Energy operates in the Midland Basin of the Permian Basin in West Texas, focusing on horizontal drilling and completion projects to enhance crude oil and natural gas output [4] - The board declared a quarterly cash dividend of $0.04 per share, payable in December 2025, despite the weak financial performance [3]