UPDATE: Wunderlich Securities Upgrades Bonanza Creek Energy as Valuation is Attractive Again

In a report published Monday, Wunderlich Securities analyst Irene O. Haas upgraded the rating on Bonanza Creek Energy BCEI from Hold to Buy, and raised the price target from $59.00 to $60.00. In the report, Wunderlich Securities noted, “Bonanza Creek Energy, Inc (BCEI) reported a strong quarter. Revenues, production, pricing costs and earnings all exceeded expectations. In addition, BCEI released positive test results from Codell, Niobrara C, and extended reach lateral Niobrara B wells. BCEI plans to bring 14 horizontal Niobrara wells on line during 4Q13 and continues to work on its "Super Section" tests. BCEI plans to provide its 2014 outlook in January next year, with production in 1Q14 likely lumpy as wells from the ‘Super Section' will not come online until March 2014. We downgraded the stock on October 22, 2013, due to valuation but held onto our thesis that BCEI is a quality name and should be a core holding. Given the recent pullback, we are upgrading our rating to Buy and are raising our target from $59 to $60.” Bonanza Creek Energy closed on Friday at $50.58.
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Posted In: Analyst ColorUpgradesAnalyst RatingsIrene O. HaasWunderlich Securities
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