UPDATE: Topeka Capital Markets Initiates Coverage on Oasis Petroleum with Hold Rating, $40 PT on Limited Upside

In a report published Wednesday, Topeka Capital Markets analyst Gabriele Sorbara initiated coverage on Oasis Petroleum

with a Hold rating and $40.00 price target. In the report, Sorbara noted, “We are initiating coverage of Oasis Petroleum (OAS) with a Hold rating and price target of $40.00 per share. While we like the OAS story given its strong position in the Bakken oil play (>335,000 net acres), the experienced management team, and strong execution and growth profile, we see limited upside following the recent move up in shares based on our commodity price assumptions. We believe the market volatility may provide a better entry point, although, we believe the Company will continue to do a great job executing and acknowledge that further de-risking of its acreage in the Basin (specifically for downspacing potential and the deeper Three Forks benches) and increasing operational efficiencies present upside to our price target.” Oasis Petroleum closed on Tuesday at $39.27.