Rodman & Renshaw Starts Ring Energy, Inc. (REI) at Buy

August 29, 2016 7:33 AM EDT
Get Alerts REI Hot Sheet
Price: $10.79 --0%

Rating Summary:
    9 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 2
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Rodman & Renshaw initiated coverage on Ring Energy, Inc. (NYSE: REI) with a Buy rating and a price target of $15. Analyst Noel Parks sees large upside potential.

"Our target is based on our risked net asset valuation (RNAV) for the company's proved and potential reserves. The upside implied by our target represents our risk-weighted model of future reserve growth, giving credit for Ring’s portfolio of sizable, emerging crude oil development plays," said Parks.

Discussing valuation, the analyst said, " On an EV/ boe basis, REI trades at a wide discount to the peers, probably because of the misconception that its conventional-only targets lack sizable upside, since the Basin’s unconventional plays are dominating investors’ interest. REI is at $18.00/boe vs. $34.39/boe for its pureplay Permian peers."

For an analyst ratings summary and ratings history on Ring Energy, Inc. click here. For more ratings news on Ring Energy, Inc. click here.

Shares of Ring Energy, Inc. closed at $10.16 yesterday.

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