Freedom Capital Downgrades Granite Ridge (GRNT) to Hold, Cuts PT to $7

Core Viewpoint - Granite Ridge Resources, Inc. is considered a cheap oil stock under $10, currently holding a consensus Hold rating with an average target price of $5.75, which is approximately 6% above its current price of $5.42 [1] Group 1: Ratings and Price Target - Freedom Capital Markets downgraded Granite Ridge from Buy to Hold and reduced its price target from $7.80 to $7.00, citing concerns over the company's debt burden due to aggressive production expansion through asset acquisition [2] - Despite the downgrade, Freedom Capital values Granite Ridge's "controlling non-op" model, which allows it to guide drilling plans with major partners like ExxonMobil, blending control with low-risk funding for steady returns [3] Group 2: Financial Performance - In Q3 2025, Granite Ridge reported revenues of $112.7 million, marking a nearly 20% increase compared to Q3 2024, driven by a 27% year-over-year increase in average daily production to 32,100 barrels of oil equivalent per day (boepd) [4] - The production surge was primarily attributed to contributions from the Permian Basin, where oil constituted 77% of the output, leading to a declared quarterly cash dividend of $0.11 per share, payable in December 2025 [4] Group 3: Company Overview - Granite Ridge Resources, Inc. is an independent oil and natural gas company that develops and operates production assets across multiple US basins, focusing on crude oil and natural gas through strategic partnerships with leading operators [5]