UPDATE: BofA Securities Starts Vine Energy Inc. (VEI) at Buy on Location Driven Cost Advantages

April 12, 2021 6:16 AM EDT
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Price: $13.06 +3.24%

Rating Summary:
    6 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 4 | New: 24
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(Updated - April 12, 2021 7:53 AM EDT)

BofA Securities initiates coverage on Vine Energy Inc. (NYSE: VEI) with a Buy rating and a price target of $21.00. VEI is a ‘pure play’ natural gas producer focused on the Haynesville and Bossier plays in Louisiana, offering several advantages over Marcellus focused pure plays – lower cost helped by absence of fixed transport and proximity to the Gulf Coast.

The analyst stated "With an ex-growth trajectory from the get go, free cash flow potential is significant, leading to rapid deleveraging and post minimum debt covenants are met, which we expect by end 2022, we fully anticipate VEI to prioritize return of capital to shareholders – essentially positioning the investment case as the ‘Cabot of the Haynesville, but with a significantly more attractive absolute & relative valuation, reflecting VEI’s embryonic market debut."

For an analyst ratings summary and ratings history on Vine Energy Inc. click here. For more ratings news on Vine Energy Inc. click here.

Shares of Vine Energy Inc. closed at $12.13 yesterday.


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