UPDATE: Deutsche Bank Initiates Hold, $9 Target on SandRidge Energy
Deutsche Bank initiates coverage on SandRidge Energy Inc. (NYSE: SD) with a Hold rating and $9 target price ahead of new Mississippian disclosures.
Deutsche Bank comments, “The key debate, in our view, is the repeatability of the core Mississippian and the funding of the ‘12-‘14 gap. Early variability in Mississippian drilling warrants greater acreage risking pending continued results, but provides a source of potential upside in 2012 as the play is further delineated. SD is driving growth from the Miss, with a $3.7bln gap in '12-‘14e; additional Miss trusts (Q1) and a trust/JV of its “new Miss” play (~1mln acres held, disclosures to come in '12) could fill the gap and provide catalysts.”
SD closed at $7.21 a share on Thursday.
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