UPDATE: Jefferies Reiterates Hold Rating, Lowers PT on W&T Offshore on Updated NAV Estimate

In a report published Monday, Jefferies analyst Biju Z. Perincheril reiterated a Hold rating on W&T Offshore

, but lowered the price target from $21.00 to $16.50. In the report, Perincheril noted, “We are updating our NAV estimate with the YE reserve report. We lower our PT to $16.50 (from $21.00). We believe the improvement in the horizontal Permian results could provide further upside. WTI is trading below its forward-looking P1 value. The discount may be justified given the lack of visibility for reserve growth from Gulf properties. Given the difficulty in predicting reserve growth for GoM names, we are now setting our PT based on EBITDA multiple. The target or ‘fair' multiple equals the company's present value adjusted reserve life.” W&T Offshore closed on Thursday at $14.20.