Stifel Thinks Penn Virginia Worth More As a Standalone Than a Takeover

Following Friday's rally of Penn Virginia PVA on takeover chatter, Stifel came out Monday and sees more upside in Penn Virginia on a standalone basis.

Stifel's belief is that the acquisition market is not recognizing much for Penn Virginia's Upper Eagle Ford project. Under either scenario (standalone or takeover), Stifel sees upside to the stock from current levels.

The firm's dual assessment summarized below:

• In a takeover scenario, we estimate a value of $17-22/share.
• As a going concern, we believe that the stock could reach our target price of $23 in 12 months, and further to $37 in three years as the Upper Eagle Ford asset is firmed up and the free cash flow outspend narrows.

Shares of Penn Virginia closed at $14.22, down 0.35 percent.