Canaccord Genuity Maintains a 'Buy' on Penn Virginia (PVA); Undervalued Even with Higher Assumed Acquisition Costs
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Price: $0.15 --0%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
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Canaccord Genuity maintains a 'Buy' on Penn Virginia (NYSE: PVA), lowers price target from $20 to $15.
Canaccord analyst, John Gerdes, said, "We are decreasing our target due to higher projected leasehold expenditures. We now model Penn Virginia adding 11,000 net acres in the Eagle Ford shale by early ’12 at $15,000/acre and replacing its drilling inventory each subsequent year at the same cost per acre. The per-acre cost is now in line with industry transactions though significantly above the company’s historical cost below $4,000. Even with this conservative assumption, PVA presents 57% upside to our target price and merits a BUY."
For more ratings news on Penn Virginia click here and for the rating history of Penn Virginia click here.
Shares of Penn Virginia closed at $9.64 yesterday.
Canaccord analyst, John Gerdes, said, "We are decreasing our target due to higher projected leasehold expenditures. We now model Penn Virginia adding 11,000 net acres in the Eagle Ford shale by early ’12 at $15,000/acre and replacing its drilling inventory each subsequent year at the same cost per acre. The per-acre cost is now in line with industry transactions though significantly above the company’s historical cost below $4,000. Even with this conservative assumption, PVA presents 57% upside to our target price and merits a BUY."
For more ratings news on Penn Virginia click here and for the rating history of Penn Virginia click here.
Shares of Penn Virginia closed at $9.64 yesterday.
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