UPDATE: Credit Suisse Initiates SandRidge Energy at Neutral; Value Hampered by Unproductive Capex

Credit Suisse initiated coverage on Sandridge Energy

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.