Canaccord Genuity Reiterates a 'Buy' on Bill Barrett (BBG); Considering Further Capital Allocation to Oil-Weighted Plays

Canaccord Genuity reiterates a 'Buy' on Bill Barrett (NYSE: BBG) price target of $37.00 (from $38.00).

Analyst, John Gerdes, said, "BBG has declined ~50% year-to-date, underperforming the E&P sector by ~30 percentage points. Weakness in gas and NGL prices, combined with elevated financial leverage and cash flow outspend, has weighed on shares...As economics now decidedly favor oil development, we believe Barrett may consider further capital allocation to oil-weighted plays, which should lead to equity outperformance. Before shifting capital from the gas- and NGL-prone Piceance Basin Barrett likely needs to announce successful results in one of the following oil-prone areas: the Uinta Basin East Bluebell/South Altamont areas, the Powder River Basin or the San Juan Basin."

For an analyst ratings summary and ratings history on Bill Barrett click here. For more ratings news on Bill Barrett click here.

Shares of Bill Barrett closed at $16.98 yesterday.

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