UPDATE: Stifel Nicolaus Upgrades Penn Virginia Corporation to Buy

Stifel Nicolaus raises its rating on Penn Virginia Corporation PVA to Buy from Hold and establishes a $7 target price on shares as the company makes progress on its turnaround. Stifel Nicolaus says, "This company is very leveraged, outspending CF, and has not laid out 2012 capex/production guidance. However, we believe the company can transition to greater liquids drilling and as the transformation takes place by YE12, the stock should respond accordingly. Our target price of $7.00, reflects 3.6x 2012 EBITDA, assuming an average FY12 gas price of $2.50/Mcf. This upgrade is primarily due to expectations of the company being able to complete a successful turnaround, despite current debt levels and expectations of further outspending of cash flow." PVA closed at $4.80 a share on Friday.