Credit Suisse Raises PT on PetroHawk Energy to $35 (HK)

Credit Suisse is out with its report today on PetroHawk Energy

, raising its PT from $33 to $35. In a note to clients, Credit Suisse writes, "Permian Holds Significant Oil Resource Potential. HK's entry into the Permian helps diversify risk and adds another attractive liquids-rich option in which to shift future capital to fund growth. This acquisition comes near the tailend of the 'HBP' drilling program in the Haynesville, which HK anticipates will decelerate to 6 rigs for 2H11 from 13 rigs now (vs. 16 in 1Q). While we are only assigning acquisition value for the Permian acreage given that it is still early in the exploration stages, we believe the asset will provide significant upside given recent de-risking by other producers in the play for multiple horizons. HK noted that it does not plan on accelerating the development of the play until the 2013 timeframe. Our 'NAV' based target price increases to $35 (from $33) based on the addition of Permian acreage and increased efficiencies in the Eagle Ford. Our 2011/12/13 EPS increases by 62%/48%/33% to $1.07/$1.97/$2.73 respectively." At the time of posting, shares of HK were trading at $25.61, down 1.16% from Monday's close.