Wunderlich Sees 60% Upside On Clayton Williams (CWEI)
Wunderlich Securities has a $70 target and Buy rating on shares of Clayton Williams Energy, Inc. (NASDAQ: CWEI), after the oil & gas company updated its guidance for the rest of the year.
In a note to investors, Wunderlich writes, "Clayton Williams Energy, Inc. (CWEI) released updated guidance for the remainder of 2010 that was in line with our previous estimates. We did see lower production forecasts in the Permian in 4Q10 but other regions were higher than our estimates and certain costs came down nicely. We believe Clayton Williams remains undervalued given its strong Permian and Austin Chalk positions, predominately locked-in margins for its production, and Eagle Ford upside potential. We maintain our Buy rating and $70.00 per share price target based on our 2011 CFPS estimate of $22.15 and 3.2x peer group multiple."
Shares of Clayton Williams Energy fell $1.99 yesterday to close at $43.31.
