UPDATE - Canaccord Genuity Upgraded Enerplus (ERF) to Buy; Sale of Marcellus Non-Operated Interests for US$575M is Positive
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Price: $20.09 --0%
Rating Summary:
10 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 12
Rating Summary:
10 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 12
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UPDATE - Canaccord Genuity upgraded Enerplus (NYSE: ERF) from Hold to Buy. PT increased from C$30 to C$33.
Canaccord analyst said, "We are upgrading our recommendation on Enerplus to a BUY and increasing our target price following the sale of its non-operated Marcellus interest for US$575 million. We view the transaction as positive due to the attractive price received and the added financial flexibility which we believe reduces the immediate risk of a dividend cut. Our target price is based on a 2012 EV/DACF multiple of 8.0x and reflects a 1.1x multiple to our CNAV estimate of $29.71."
"Based on our revised estimates, we note that the sale is largely accretive on
both cash flow and net asset value. Our 2011 and 2012 cash flow estimates
increase by 2% and 3%, respectively, while our risked contingent net asset
valuation increases by 4%."
To see all upgrades/downgrades on shares of ERF, visit our Analyst Ratings page.
Canaccord analyst said, "We are upgrading our recommendation on Enerplus to a BUY and increasing our target price following the sale of its non-operated Marcellus interest for US$575 million. We view the transaction as positive due to the attractive price received and the added financial flexibility which we believe reduces the immediate risk of a dividend cut. Our target price is based on a 2012 EV/DACF multiple of 8.0x and reflects a 1.1x multiple to our CNAV estimate of $29.71."
"Based on our revised estimates, we note that the sale is largely accretive on
both cash flow and net asset value. Our 2011 and 2012 cash flow estimates
increase by 2% and 3%, respectively, while our risked contingent net asset
valuation increases by 4%."
To see all upgrades/downgrades on shares of ERF, visit our Analyst Ratings page.
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