UPDATE: Credit Suisse Initiates SandRidge Energy at Neutral; Value Hampered by Unproductive Capex
Credit Suisse initiated coverage on Sandridge Energy (NYSE: SD) with a Neutral rating and a $6.30 price target.
Credit Suisse noted, "We are initiating coverage of SandRidge with a Neutral rating and target price of $6.30, assuming 6.0 times 2013E EBIDA. SD is essentially a pure play on the Mississippian. We expect shares to be range bound in 2013, given continued outspend and significant levels of unproductive capex, which will likely mask value-creation potential from this intriguing play."
SandRidge Energy closed at $5.63 on Tuesday.
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