Analysts Say CEO's Offer Greatly Undervalues Venoco (VQ), More Bids Will Come
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Price: $12.49 --0%
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Shares of Venoco (NYSE: VQ) have surged some 30 percent Monday morning following news the company's CEO issued a non-binding proposal at $12.50 per share in cash.
While the Street certainly likes the offer, Wall Street analysts see bigger and better things for Venoco.
Philip McPherson, an analyst at Global Hunter, calls the CEO bid the "Takeunder of the Decade."
McPherson encourages investors not to sell into the news as another E&P company will most likely make another more appealing bid. Global Hunter currently has a $20 price target on shares of VQ.
Prithcard Capital's Stephen Berman believes the $12.50 per share cash offer is also unlikely to occur as it undervalues the company significantly. Mr. Berman points out the bid does not factor in upside from Monterey Shale and the Hastings reversionary interest. The firm also believes another, much higher, offer will be via the CEO Mr. Marquez or another E&P.
Susquehanna's Duane Grubert believes the offer may have been made in order to spark a competing bid. The analyst believes potential suitors could include Occidental (NYSE: OXY), Chevron (NYSE: CVX), Exxon (NYSE: XOM) and Chesapeake (NYSE: CHK).
While the Street certainly likes the offer, Wall Street analysts see bigger and better things for Venoco.
Philip McPherson, an analyst at Global Hunter, calls the CEO bid the "Takeunder of the Decade."
McPherson encourages investors not to sell into the news as another E&P company will most likely make another more appealing bid. Global Hunter currently has a $20 price target on shares of VQ.
Prithcard Capital's Stephen Berman believes the $12.50 per share cash offer is also unlikely to occur as it undervalues the company significantly. Mr. Berman points out the bid does not factor in upside from Monterey Shale and the Hastings reversionary interest. The firm also believes another, much higher, offer will be via the CEO Mr. Marquez or another E&P.
Susquehanna's Duane Grubert believes the offer may have been made in order to spark a competing bid. The analyst believes potential suitors could include Occidental (NYSE: OXY), Chevron (NYSE: CVX), Exxon (NYSE: XOM) and Chesapeake (NYSE: CHK).
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