Resolute Energy (REN) Reiterated Buy at Wunderlich
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Price: $30.91 --0%
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Wunderlich Securities maintained a Buy rating on Resolute Energy (NYSE: REN) with a price target of $13.00. Analyst Jason A. Wangler thinks weakness creates opportunity.
"Resolute Energy (REN) stock has been under pressure since 4Q13 when it disclosed strong Permian and Powder River Basin results that are causing a shift in focus toward these high impact assets and away from its legacy Aneth cash cow. The company is being prudent in this shift and cut back spending to within forecasted cash flows, lessening the potential for a debt or equity raise, but did indicate that it may sell assets to help reduce debt and boost activity. While we like the move, clearly the lower forecasts and change in strategy has bothered some," said Wangler.
"Growing pains aren't always fun and the moves by Resolute, done out of both necessity and opportunity, have concerned some investors. However, we feel the company's long-term growth potential and valuation are as compelling as ever with the company shifting its focus and improving the financial position. Resolute currently trades at a 2.6x 2015E P/CFPS multiple versus peers at 4.2x, providing compelling value," he added.
For an analyst ratings summary and ratings history on Resolute Energy click here. For more ratings news on Resolute Energy click here.
Shares of Resolute Energy closed at $7.37 yesterday.
"Resolute Energy (REN) stock has been under pressure since 4Q13 when it disclosed strong Permian and Powder River Basin results that are causing a shift in focus toward these high impact assets and away from its legacy Aneth cash cow. The company is being prudent in this shift and cut back spending to within forecasted cash flows, lessening the potential for a debt or equity raise, but did indicate that it may sell assets to help reduce debt and boost activity. While we like the move, clearly the lower forecasts and change in strategy has bothered some," said Wangler.
"Growing pains aren't always fun and the moves by Resolute, done out of both necessity and opportunity, have concerned some investors. However, we feel the company's long-term growth potential and valuation are as compelling as ever with the company shifting its focus and improving the financial position. Resolute currently trades at a 2.6x 2015E P/CFPS multiple versus peers at 4.2x, providing compelling value," he added.
For an analyst ratings summary and ratings history on Resolute Energy click here. For more ratings news on Resolute Energy click here.
Shares of Resolute Energy closed at $7.37 yesterday.
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