PDC Energy (PDCE) PT Raised to $73 at BMO Capital

BMO Capital analyst Phillip Jungwirth raised the price target on PDC Energy (NASDAQ: PDCE) to $73.00 (from $65.00) while maintaining a Market Perform rating.

The analyst commented, "PDC has long been viewed as a buyer given its shorter inventory life and higher regulatory risk, combined with strong balance sheet and FCF profile. With Great Western, PDC is doubling down on the DJ, but we like the deal given the compelling valuation that is highly accretive with minimal value implied for development potential despite IRRs that compete with existing inventory. The weaker 2022 standalone guidance and cash taxes temper positive FCF revisions to our model, but 2022E/23E EBITDAX/share increases >20% given the discounted valuation and mostly cash financing."

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