KLR Group Downgrades Sanchez Energy (SN) to Accumulate
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
KLR Group downgraded Sanchez Energy (NYSE: SN) from Buy to Accumulate with a price target of $10. Analyst John Gerdes tied the downgrade to valuation.
"Sanchez’s share price has appreciated almost 50% since our mid-July upgrade, outperforming the sector by ~40%, and now reflects modest intrinsic upside thus requiring a downgrade to Accumulate. Sanchez’s mid-cycle (’18) capital yield is ~105% versus the industry median cash recycle ratio of ~130%. Our ’16 production expectation of ~55 Mboepd is ~6% above company guidance (48-52 Mboepd). Assuming a commodity price recovery, our economic model assumes Sanchez conducts a three-rig program in ’17 and four-rig program in ’18," said Gerdes.
Shares of Sanchez Energy closed at $9.17 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- Bassett Furniture (BSET) PT Raised to $28 at Stifel Following 4Q EPS Beat
- Drexel Hamilton Reiterates Buy on IBM (IBM) Following 4Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!