UBS Asks What's More Shocking for SandRidge Energy (SD)? The Strategic Shift or the Deal’s Accretive Metrics
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Price: $14.35 --0%
Rating Summary:
2 Buy, 13 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 7 | New: 13
Rating Summary:
2 Buy, 13 Hold, 11 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 7 | New: 13
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UBS maintains a 'Neutral' on SandRidge Energy (NYSE: SD) price target lowered from $9 to $8.
UBS analyst says, "SD to acquire Dynamic Offshore at a rather full price of $1.275 billion...Deal is accretive to SD’s financial, leverage, and valuation metrics - We're raising ‘12-13 EPS/CFPS to $(0.05)/$1.20 & $0.30/$1.90 from $(0.15)/$0.95 & $0.15/$1.45."
"We would note several concerns about the acquisition: 1) it lowers SD’s longer term growth rate, 2) dilutes SD’s appeal as a resource play E&P particularly for its horizontal Mississippian, 3) Riverstone and Dynamic insiders now own 10% of SD which could serve as an overhang, and 4) entry into this new capital-intensive region adds considerable LT operational challenges."
For an analyst ratings summary and ratings history on SandRidge Energy click here. For more ratings news on SandRidge Energy click here.
Shares of SandRidge Energy closed at $7.83 yesterday.
UBS analyst says, "SD to acquire Dynamic Offshore at a rather full price of $1.275 billion...Deal is accretive to SD’s financial, leverage, and valuation metrics - We're raising ‘12-13 EPS/CFPS to $(0.05)/$1.20 & $0.30/$1.90 from $(0.15)/$0.95 & $0.15/$1.45."
"We would note several concerns about the acquisition: 1) it lowers SD’s longer term growth rate, 2) dilutes SD’s appeal as a resource play E&P particularly for its horizontal Mississippian, 3) Riverstone and Dynamic insiders now own 10% of SD which could serve as an overhang, and 4) entry into this new capital-intensive region adds considerable LT operational challenges."
For an analyst ratings summary and ratings history on SandRidge Energy click here. For more ratings news on SandRidge Energy click here.
Shares of SandRidge Energy closed at $7.83 yesterday.
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