UPDATE: Deutsche Bank Initiates Bill Barrett with Hold, $30 PT
Deutsche Bank initiates its coverage on Bill Barrett (NYSE: BBG) with a Hold rating and a price target of $30 as the companyany shifts its mix towards oil.
Deutsche Bank says, "Bill Barrett is in the midst of a transition towards oil, centered around the Uinta Basin oil play. Strong returns and ramping activity (Uinta will make up 50% of total rig count by 2H12) will shift the production mix from under 10% oil to 20% oil by 2014 and support steady cash flow growth, even in a flat commodity environment. However, limits to further acceleration in the Uinta and a widening funding gap will keep gas price in the forefront for now."
BBG closed at $22.86 on Wednesday.
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