UPDATE: Global Hunter Securities Initiates Neutral, $14.50 PT on Talisman Energy
Global Hunter Securities initiates its coverage of Talisman Energy Inc. (NYSE: TLM) with a Neutral rating and $14.50 price target on the company near-term growth potential and valuation.
Global Hunter Securities says, "Talisman Energy has been going through a strategy shift since 2009, upping its shale exposure while maintaining cash-generating core regions and moving out into some frontier exploration plays. So far, though, there have been some bumps in the road – heavy exposure to North American gas is dragging on top-line growth, and operational issues are cutting into production growth in the North Sea. Company guidance for 2012 growth is now flat to 5% (we're modeling 2.1%), and management has cut the 2012 capex budget 11% to $4B. TLM's price/NAV ratio is above the peer median and price and EV metrics are in line."
TLM closed at $13.01 a share yesterday.
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