UPDATE: Wunderlich Securities Downgrades SandRidge Energy to Hold, Lowers PT
In a report published Wednesday, Wunderlich Securities downgraded its rating on SandRidge Energy (NYSE: SD) from Buy to Hold, and lowered its price target from $9.00 to $7.00.
Wunderlich Securities noted, “SandRidge Energy (SD) announced it would divest its Permian assets for $2.6 billion, which was above the high end of our expected range of $2.0-$2.5 billion. The sale should be completed in 1Q13 and provide ample cash proceeds that SandRidge can use to fund its liquidity gap and reduce debt. However, the sale also reduces our estimates going forward given the strong, oily production from the Permian. Looking forward, we are moving to the sidelines based on the uncertainty of management/board leadership due to the ongoing proxy vote and the increased focus on the Mississippi Lime play that looks prospective but needs to be shown as a company-maker for SandRidge.”
SandRidge Energy closed on Monday at $6.35.
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