UPDATE: Wunderlich Securities Downgrades Berry Petroleum Company on Valuation
In a report published Wednesday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on Berry Petroleum Company (NYSE: BRY) from Buy to Hold, but reiterated the $55.00 price target.
In the report, Wunderlich Securities noted, “It has been an interesting ride for Berry Petroleum (BRY) in 2013 as the company was set to be acquired by LINN Energy (LINE-NR) via its LinnCo (LNCO-NR) acquisition vehicle for about $46/share, a 20% premium to the closing price of $38.59 on February 21, 2013. As the deal/year continued on, the stocks were under pressure and when the SEC stepped in on July 1, the LINE and LNCO shares plummeted, as did Berry's. Meanwhile Berry had reported strong 1Q13 and 2Q13 results and the horizontal Permian, where Berry has 30,000 core and 60,000 total net acres, was taking off. We upgraded the stock in August at $41 under the belief that it was worth more with or without LINE/LNCO, and with the raised offering from the acquirers getting shares to about $55, we believe this price is more fair.”
Berry Petroleum Company closed on Tuesday at $51.33.
Latest Ratings for BRY
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.