UPDATE: Stifel Nicolaus Upgrades SandRidge Energy to Buy
Stifel Nicolaus upgrades SandRidge Energy (NYSE: SD) to Buy from Hold as teh company reduces downside risk through balance sheet de-leveraging. Stifel Nicolaus also establishes a $10.50 price target on shares.
Stifel Nicolaus says, "Over the past two months, SD has deleveraged the balance sheet with two key events (second Mississippian JV, GOM acquisition with equity issuance), reduced the downside risk while giving away some of the Mississippian upside through the GOM acquisition (proved NAV increased from $8.50/sh to $10/sh while risked NAV decreased from $19/sh to $17/sh), and its key asset, the Mississippian, has continued to improve - additional data points, EURs up, production up. Despite this, the stock is slightly lower than where it was two months ago before these events."
SD closed at $7.46 a share on Thursday.
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