UPDATE: BMO Capital Downgrades PDC Energy (PDCE) to Market Perform

August 8, 2016 7:21 AM EDT
Get Alerts PDCE Hot Sheet
Price: $74.57 --0%

Rating Summary:
    16 Buy, 9 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 5 | New: 17
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(Updated - August 8, 2016 8:19 AM EDT)

BMO Capital downgraded PDC Energy (NASDAQ: PDCE) from Outperform to Market Perform with a price target of $58 (unchanged). Analyst Dan McSpirit said he sees limited upside.

"In absolute terms, we see limited upside from where the shares are trading relative to our NAV-based target price of $58, an analysis grounded in well economics models for each of the company's operations and which shows remaining DJ Basin inventory measured in high-single-digit/low-double-digit years," said McSpirit. "In relative terms, we see no meaningful compression of the EBITDA multiple over time (7x 2017E EBITDA to 6x 2018E EBITDA at NYMEX strip pricing), also a reflection of the less competitive returns in the field in this somewhat contango-less oil and backwardation gas curves, as well as the reality of hedges rolling off."

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 $55.48 yesterday.

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