UPDATE: BMO Capital Markets Raises PT to $55 on PDC Energy on Asset Success, Inventory Update
BMO Capital Markets maintained PDC Energy (NASDAQ: PDCE) with an Outperform rating and raised the price target from $42.00 to $55.00.
BMO Capital Markets commented, "Based on PDC's horizontal Niobrara and Codell success, and its recent inventory update in which it provided probable and possible locations, we view the stock as meaningfully undervalued. Our after-tax NAV analysis derives a fair valuation of $49 per share using BMO's price deck and $57 per share at the NYMEX strip. The majority of our valuation is based on the horizontal Niobrara and Codell and gives full credit for probable locations, but no credit for possibles, or “A” or “C” bench resource potential."
PDC Energy closed at $41.17 on Tuesday.
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