KeyBanc Raises Price Target on Kodiak Oil & Gas (KOG), Sees 250% Organic Production Growth in 2012
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Price: $6.56 --0%
Rating Summary:
11 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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KeyBanc is reiterating its Buy rating on shares of Kodiak Oil & Gas (NYSE: KOG) while raising its price target from $10 to $13.
The firm is extremely bullish on shares of KOG and the near-term growth outlook of the company. For 2012, KeyBanc forecasts total production growth of 395 percent with 250 percent organic growth. At the end of 2012, the firm anticipates the company will be producing 30 MBOED, which is almost double its 17 MBOED targeted for 2011 and its 3.95 MBOED in Q3 2011.
Kodiak Oil's recent equity offering which contributed to the acquisition of 50 thousand acres in the Bakken was a great move according to KeyBanc. The firm believes the deal "achieved a one-two punch of addressing liquidity needs while also executing a significantly accretive transaction that elevates Kodiak’s inventory to a new level of critical mass."
An analyst at KeyBanc comments, "While the market has received the deal announcement positively, as KOG shares are up 5% since the news first hit, we see considerably more upside on the horizon as the Company executes on its plan to grow production and achieve value recognition for its unique pure-play leverage to high-quality Bakken/Three Forks targets."
The firm is reiterating its FY11 EPS estimate of $0.28, but is raising its FY12 estimate from $0.67 to $0.76.
For an analyst ratings summary and ratings history on Kodiak Oil & Gas click here. For more ratings news on Kodiak Oil & Gas click here.
Shares of Kodiak Oil & Gas closed at $7.75 yesterday.
The firm is extremely bullish on shares of KOG and the near-term growth outlook of the company. For 2012, KeyBanc forecasts total production growth of 395 percent with 250 percent organic growth. At the end of 2012, the firm anticipates the company will be producing 30 MBOED, which is almost double its 17 MBOED targeted for 2011 and its 3.95 MBOED in Q3 2011.
Kodiak Oil's recent equity offering which contributed to the acquisition of 50 thousand acres in the Bakken was a great move according to KeyBanc. The firm believes the deal "achieved a one-two punch of addressing liquidity needs while also executing a significantly accretive transaction that elevates Kodiak’s inventory to a new level of critical mass."
An analyst at KeyBanc comments, "While the market has received the deal announcement positively, as KOG shares are up 5% since the news first hit, we see considerably more upside on the horizon as the Company executes on its plan to grow production and achieve value recognition for its unique pure-play leverage to high-quality Bakken/Three Forks targets."
The firm is reiterating its FY11 EPS estimate of $0.28, but is raising its FY12 estimate from $0.67 to $0.76.
For an analyst ratings summary and ratings history on Kodiak Oil & Gas click here. For more ratings news on Kodiak Oil & Gas click here.
Shares of Kodiak Oil & Gas closed at $7.75 yesterday.
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