Imperial Capital Cuts Price Target on Bonanza Creek Energy (BCEI) to $11 Following EPS Miss

Imperial Capital maintained an Outperform rating on Bonanza Creek Energy (NYSE: BCEI), and cut the price target to $11.00 (from $30.00), following 2Q15 results. Adjusted EPS of ($0.27) per share, which missed the consensus of ($0.11).

Analyst Kim Pacanovsky commented, "We are maintaining our Outperform rating on BCEI shares and lowering our one-year price target to $11 from $30, about 33% above the recent share price. Our reduced price target reflects the poor performance of BCEI and the sector due to a second step down in crude pricing, and while we believe the shares may be under near-term pressure due to borrowing base redetermination concerns in the sector, we believe that BCEI’s anticipated cash flow outspend through the end of 2016 is easily covered by even a significantly reduced borrowing base. Therefore, while BCEI is perhaps not the lowest cost producer in the basin, we believe it is still attractive at these levels."

For an analyst ratings summary and ratings history on Bonanza Creek Energy click here. For more ratings news on Bonanza Creek Energy click here.

Shares of Bonanza Creek Energy closed at $8.27 yesterday.

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