Simmons Cuts Price Target on Synergy Resources (SYRG) to $10

September 8, 2016 9:09 AM EDT
Get Alerts SYRG Hot Sheet
Price: $7.24 -2.29%

Rating Summary:
    24 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 28 | New: 8
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Simmons maintained an Overweight rating on Synergy Resources Corporation (NYSE: SYRG), and cut the price target to $10.00 (from $11.00), following the company's preliminary 2017 guidance announcement. Simmons has not changed its '16 and '17 earnings estimates from the modeling changes.

Analyst Pearce Hammond commented, "SYRG shares were up 7% today following the preliminary '17 guidance announcement. As a result of updated guidance, our '17 EBITDAX moves higher by 4%, but our '17 eps estimate remains unchanged. We have also updated our model for some new DJ Wattenberg Fairway well economics as well as the updated location count. Our PT/NAV drops to $10/sh from $11/sh, but the change is not that stark as the underlying change in the NAV was just 14c/sh (we round price targets to the nearest dollar). We continue to like SYRG for small cap E&P investors as the shares are trading at 8.2x '17E EV/EBITDAX vs. our E&P coverage group at 10.3x, yet the company should deliver outsized production growth in '17 (67% vs. our E&P coverage group at 4%). The shares offer 43% upside potential vs. our E&P coverage group at 16% upside."

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

Shares of Synergy Resources Corporation closed at $7.00 yesterday.

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