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UPDATE: Topeka Initiates Cimarex Energy with Hold Rating on Less Attractive Value Proposition

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In a report published Wednesday, Topeka Capital Markets analyst Gabriele Sorbara initiated coverage on Cimarex Energy Co. (NYSE: XEC) with a Hold rating and $80.00 price target.

In the report, Sorbara noted, “XEC has a strong inventory of organically generated drilling locations across the Permian Basin and Mid-Continent region (particularly in the CanaWoodford), but following the recent move [up 31.8% year-to-date vs. the PHLX SIG Oil Exploration and Production (EPX - $423.68) which is up 9.6%], we see a less attractive value proposition at the current share price. We believe success in extending the Wolfcamp and 2nd Bone Spring play into the Southern Delaware Basin and/or success in its new ventures in the Mid-Continent region may drive our RNAV upward and multiple expansion, resulting in a potential re-rating.”

Cimarex Energy Co. closed on Tuesday at $76.08.

Latest Ratings for XEC

DateFirmActionFromTo
Nov 2020Morgan StanleyMaintainsOverweight
Oct 2020Raymond JamesUpgradesMarket PerformOutperform
Oct 2020Truist SecuritiesUpgradesHoldBuy

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Posted-In: Topeka Capital MarketsAnalyst Color Initiation Analyst Ratings

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