Goldman Sachs Cuts Denbury Resources (DNR) to Sell

January 30, 2014 6:45 AM EST
Get Alerts DNR Hot Sheet
Price: $3.77 -0.79%

Rating Summary:
    5 Buy, 14 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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Goldman Sachs downgraded Denbury Resources (NYSE: DNR) from Neutral to Sell with a price target of $17.00.

Analyst Joseph B. Stewart said, "We view DNR as a high quality, slow and steady oil company, but we expect its relatively weak outlook for growth and returns along with a lack of material upcoming positive catalysts to lead to underperformance relative to the rest of our coverage group. While DNR is the best pure play on CO2 Enhanced Oil Recovery among US E&Ps, in our view, we project the company to generate a CF/DAS CAGR of only 2% during 2014E-16E, the lowest among the US onshore E&Ps under coverage, which boast an average of 21%. Further, the company's low 9% average CROCI outlook through 2016E and its limited 40 year resource life also stack up poorly vs. the group, with US onshore E&Ps averaging 14% and 48 years respectively (ex. min/max)."

For an analyst ratings summary and ratings history on Denbury Resources click here. For more ratings news on Denbury Resources click here.

Shares of Denbury Resources closed at $16.04 yesterday.

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