UPDATE: Goldman Sachs Starts PDC Energy (PDCE) at Buy

(updating comment)

Goldman Sachs analyst Umang Choudhary initiates coverage on PDC Energy (NASDAQ: PDCE) with a Buy rating and a price target of $20.00.

The analyst comments " FCF upside more than offsets potential for Colorado regulatory overhang; Buy on underappreciated FCF outlook. PDCE — the third largest DJ Basin (CO) producer with a small position in the Permian Basin (TX) — trades at 2.8x/2.3x pre-hedge EBITDA and a 26%/25% FCF yield in 2021/22, we believe valuation is attractive even considering a potential overhang around Colorado regulation. We initiate at Buy with a 12-month price target of $20/shr (24% upside) and believe confidence in our above consensus FCF can drive shares to outperform."

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 $16.28 yesterday.

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