UPDATE: Canaccord Genuity Upgrades SandRidge Energy (SD) to Hold; Concerns Remain, But Valuation More Appropriate
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Price: $14.53 +1.47%
Rating Summary:
2 Buy, 11 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
2 Buy, 11 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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(Updated - May 16, 2012 8:47 AM EDT)
Canaccord Genuity upgraded SandRidge Energy (NYSE: SD) from Sell to Hold. PT $6.
Analyst, John Gerdes, said, "Since late February, SD has declined almost 30%, underperforming the E&P sector by ~10%. With minimal downside to our target, a HOLD rating is now appropriate...SandRidge suggests it should be free cash flow neutral in ‘14/’15, though we see the company outspending cash flow by $1+ billion per annum for the foreseeable future. Yet we believe financial strains should ease over the next two years. In ‘12, the 2nd Mississippian trust should essentially cover the cash flow shortfall. In ‘13, SandRidge should be able to cover the cash flow gap with the sell-down of common trust units and the divestiture of another ~250,000 acres in the Mississippian play."
For an analyst ratings summary and ratings history on SandRidge Energy click here. For more ratings news on SandRidge Energy click here.
Shares of SandRidge Energy closed at $6.20 yesterday.
Canaccord Genuity upgraded SandRidge Energy (NYSE: SD) from Sell to Hold. PT $6.
Analyst, John Gerdes, said, "Since late February, SD has declined almost 30%, underperforming the E&P sector by ~10%. With minimal downside to our target, a HOLD rating is now appropriate...SandRidge suggests it should be free cash flow neutral in ‘14/’15, though we see the company outspending cash flow by $1+ billion per annum for the foreseeable future. Yet we believe financial strains should ease over the next two years. In ‘12, the 2nd Mississippian trust should essentially cover the cash flow shortfall. In ‘13, SandRidge should be able to cover the cash flow gap with the sell-down of common trust units and the divestiture of another ~250,000 acres in the Mississippian play."
For an analyst ratings summary and ratings history on SandRidge Energy click here. For more ratings news on SandRidge Energy click here.
Shares of SandRidge Energy closed at $6.20 yesterday.
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