UPDATE: Topeka Capital Markets Lowers PT on Bonanza Creek Energy Following Analyst Day
In a report published Friday, Topeka Capital Markets analyst Gabriele Sorbara reiterated a Hold rating on Bonanza Creek Energy (NYSE: BCEI), but lowered the price target from $42.00 to $38.00.
In the report, Sorbara noted, “After tuning in to Bonanza Creek Energy's (BCEI) Analyst Day which was held in Denver yesterday, we are reaffirming our Hold rating, but lowering our price target to $38.00 from $42.00, after adjusting estimates for the recent high yield debt offering and lower EUR assumptions for the Niobrara in our RNAV valuation. While we like BCEI's Niobrara position in the Wattenberg field, we came away from the Analyst Day a little disappointed. We went into the Analyst Day believing expectations were set high on the back of offset operators' success in the play – we were correct. Overall, we do think BCEI is being conservative and is still early in the play, but we are reaffirming our Hold rating, given the limited upside to our price target and following the recent outperformance [up 32.0% year-to-date vs. the PHLX SIG Oil Exploration and Production (EPX) which is up 9.7%].”
Bonanza Creek Energy closed on Thursday at $36.39.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.