Global Hunter Securities Downgrades Hess Corp. (HES) to Accumulate

February 1, 2013 10:29 AM EST
Get Alerts HES Hot Sheet
Price: $58.11 +0.68%

Rating Summary:
    15 Buy, 18 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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Global Hunter Securities downgraded Hess Corp. (NYSE: HES) from Buy to Accumulate with a price target of $73.00 (from $63.00).

The firm comments, "Following the run-up in share price this week on the announced closure of the Port Reading refinery and a letter from activist Elliott Management calling for board seats and ultimately the split up of the company, HES shares closed as much as 15.6% above last Friday’s highs before coming down to yesterday’s $67.16 close – still 14% above a week ago. We continue to like the direction for HES – it looks to us like management is already addressing some of Elliott's concerns, including reducing Bakken costs and shedding non-core assets – but the price rise takes us much closer to fair value. The slight drop in reserves YoY and higher expected lifting costs in 2013 also give us pause. We are raising our price target from $63 to $73, representing 80% of our $91 pretax NAV and 3.9x 2013 EV/EBITDA, and are lowering our rating to Accumulate from Buy."

For an analyst ratings summary and ratings history on Hess Corp. click here. For more ratings news on Hess Corp. click here.

Shares of Hess Corp. closed at $67.16 yesterday.

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downgraded, but target price is up?
Isaac Seungil Park on 2013-02-01 11:22:12
Mark as Spam | Reply to this comment

This is totally non-sense to me! LOL

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