UPDATE: Global Hunter Securities Upgrades Abraxas Petroleum (AXAS) to Accumulate

March 13, 2014 7:08 AM EDT
Get Alerts AXAS Hot Sheet
Price: $2.52 +0.40%

Rating Summary:
    9 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 3
Trade AXAS Now!
Join SI Premium – FREE
(Updated - March 13, 2014 10:36 AM EDT)

Global Hunter Securities upgraded Abraxas Petroleum (NASDAQ: AXAS) from Neutral to Accumulate with a price target of $4.50.

Analyst Mike Kelly said, "Very positive developments on AXAS's conference call coupled with a compelling valuation and organic growth profile lead us to upgrade AXAS to Accumulate from Neutral and increase our price target to $4.50 from $4."

"Net debt fell ~41% sequentially post the $73MM sale of its non-operated Eagle Ford assets, which has dropped AXAS's FY14E EV/EBITDA multiple to 5.1x vs. small-cap peers at 6x, and has helped push our debt-adjusted production growth per share forecast to 10% in 2014, now higher than the industry average of ~7%. AXAS's inventory footprint is also much improved vs. prior quarters; we now see a future well count >2x higher than what we had dialed in two quarters prior, driven by Eagle Ford success at its emerging Jourdanton prospect (>100 locations possible) and downspacing in the Bakken. Lastly, AXAS's margin profile has shown a notable improvement – we forecast its 2014 recycle ratio (op margin per boe/DD&A per boe) at 2.23 vs. 1.47 in 2013; AXAS is now outperforming its peers on this metric (industry avg. = 2.0)."

For an analyst ratings summary and ratings history on Abraxas Petroleum click here. For more ratings news on Abraxas Petroleum click here.

Shares of Abraxas Petroleum closed at $3.14 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change, Upgrades

Related Entities

Bakken Formation

Add Your Comment