KLR Group Cuts Price Target on PDC Energy (PDCE) to $80; Reiterates Buy

KLR Group maintained a Buy rating on PDC Energy (NASDAQ: PDCE), and cut the price target to $80.00 (from $87.00), following the company's Delaware Basin acquisition. PDC is acquiring ~57,000 net acres in the Delaware Basin for ~$1.5 billion comprising.

Analyst John Gerdes commented, "We are decreasing our PDCE target price $7 to $80 per share target price due to the additional equity capitalization of the Delaware Basin acquisition. Specifically, PDC is issuing 9.085 million shares (includes overallotment) at a price to the public of ~$63.30 per share. The common offering increases shares outstanding ~16% and should generate approximately $560 million of net proceeds. Pro forma the equity financing, the company’s YE’16 net debt-to-EBITDA should decrease from ~2.5x to ~1.4x."

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

Shares of PDC Energy closed at $64.82 yesterday.

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