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UPDATE: Imperial Capital Upgrades Gastar Exploration to Outperform, Raises PT

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In a report published Wednesday, Imperial Capital upgraded its rating on Gastar Exploration (NYSE: GST) from In-Line to Outperform, and slightly raised its price target from $2.50 to $3.00.

Imperial Capital noted, “We are upgrading Gastar Exploration (GST) to Outperform from In-Line, as shares have been under selling pressure and are now trading at a level that possess limited downside, in our opinion. We also are raising our one-year price target to $3.00 from $2.50 previously. The shares present an opportunity for nearly 100% potential upside to our revised price target, which is based on our future proved NAV at long-term pricing of $4.00/Mmbtu and $95.00/bbl. Based on our calculation, over the next sixteen months, we project the company's proved NAV to grow from $1.27 per share at the end of 2Q12 to $3.09 per share at year-end 2013, driven solely by its activity in the liquids-rich Marcellus shale in Marshall and Wetzel County. With this level of expected proved NAV creation, the significant discount to our conservative RNAV of $4.75 per share and with its option value exposure in the emerging Eaglebine play and undisclosed new venture oil play, we believe GST could surface as a takeout or reorganization target. While this is not the market for speculating in micro-caps, we feel that the nearly 100% upside to the current share price cannot be ignored, although, in this volatile market, investors may need to be patient.”

Gastar Exploration closed on Tuesday at $1.56.

Latest Ratings for GST

DateFirmActionFromTo
Oct 2016FBR CapitalDowngradesOutperformMarket Perform
Aug 2016Williams CapitalInitiates Coverage onHold
Aug 2016iBERIA Capital PartnersAssumesSector Perform

View More Analyst Ratings for GST
View the Latest Analyst Ratings

Posted-In: imperial capitalAnalyst Color Upgrades Analyst Ratings

 

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