FBR Capital Raises Price Target on Earthstone Energy (ESTE) Following Analysis of Bold Energy Combination

November 10, 2016 7:14 AM EST
Get Alerts ESTE Hot Sheet
Price: $14.11 +0.79%

Rating Summary:
    11 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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FBR Capital reiterated an Outperform rating on Earthstone Energy (NYSE: ESTE), and raised the price target to $17.00 (from $14.00), following an analysis of the company's combination with Bold Energy III LLC. The combination is a strategic transaction that establishes a significant operated position in the Midland Basin. Bold investors will effectively receive 36.1 million shares, representing 61% of the combined company, with ESTE stockholders retaining a 39% stake.

Analyst Chad Mabry commented, "We are raising our price target on ESTE to $17 (from $14) following our deeper dive into the company’s strategic combination with Bold Energy. We were initially positive on the transaction—refer to our prior note, "Bold Move: Positive Initial Read on Transformative Acquisition; Reiterate Outperform"—which we felt delivered on investor expectations of expanding Earthstone’s operated position in the Midland Basin. Further updates to our financial model following an investor call on November 9 indicate that the deal is indeed accretive to our NAV. We reiterate our Outperform rating as we believe the pro forma portfolio offers a much more attractive platform for future growth."

For an analyst ratings summary and ratings history on Earthstone Energy click here. For more ratings news on Earthstone Energy click here.

Shares of Earthstone Energy closed at $11.94 yesterday.



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