UPDATE: Deutsche Bank Lowers PT on SandRidge Energy on Downward Revision
In a report published Friday, Deutsche Bank reiterated its Hold rating on SandRidge Energy (NYSE: SD), but slightly lowered its price target from $5.00 to $4.00.
Deutsche Bank noted, “Another quarter, another downward revision. In the midst of all of the sound and fury of an activist campaign centered around concerns with management, the biggest problem at SD has been the steady deterioration of the Mississippian. SD revised down its type curve in the play, reducing per well oil reserves by 30% and total reserves by 22% since 3Q. As reserves have eroded, so has the market's bull case on the stock (cheap on NAV), with our NAV suffering a further revision down, and CHK's recent deal in the play adding further headwinds to the ability of SD to accretively sell or JV additional acreage in the future.”
SandRidge Energy closed on Thursday at $5.70.
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Tags: Deutsche Bank