UPDATE: Societe Generale Cuts PT to $39 on Newfield Exploration on Lower Estimates
Societe Generale reiterated its Buy rating on Newfield Exploration (NYSE: NFX) but reduced its price target from $40 to $39.
Societe Generale said, "Our valuation multiple is a roughly 30% discount to the peer group multiple due to prior issues in the Bakken, the need to prove the economics of its Uinta prospects, including needed government approval for longer laterals, and what we view as poor communication of the Malaysia PSC impact. That said, the Street remains in a glass-half-empty mode with regard to these areas. We're not in that camp and think it more prudent to focus on NFX's US operations, which we believe have turned the corner. NFX does not currently pay a dividend."
Newfield Exploration closed at $23.88 on Tuesday.
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