Market Overview

UPDATE: Morgan Stanley Reiterates on Bonanza Creek Energy on Superior Growth, Shallower Inventory


In a report published Friday, Morgan Stanley analyst Drew Venker reiterated an Equal-Weight rating on Bonanza Creek Energy (NYSE: BCEI), and raised the price target from $40.00 to $50.00.

In the report, Morgan Stanley noted, “Despite peer-leading growth, we prefer oil-weighted E&Ps with more visible inventory. We forecast exceptional production growth for BCEI (production CAGR of 30% vs. oil-weighted peers at 23%). However, we estimate that BCEI will drill through its highest quality inventory (Niobrara B) by 2020. BCEI trades at 5.7x 2014e EV/EBITDA vs. oil-weighted peers at 7.5x. We believe this discount is justified given BCEI's shallower inventory and less upside to unrisked NAV vs. peers. We estimate ~50% upside to unrisked NAV, less than our Overweight-rated names CLR at 120% and XEC at 110%. We would like to see deeper drilling inventory before getting more positive on the stock.”

Bonanza Creek Energy closed on Thursday at $46.67.

Latest Ratings for BCEI

Jan 2021KeyBancMaintainsOverweight
Jan 2021KeyBancMaintainsOverweight
Oct 2020KeyBancMaintainsOverweight

View More Analyst Ratings for BCEI
View the Latest Analyst Ratings


Related Articles (BCEI)

View Comments and Join the Discussion!

Posted-In: Drew Venker Morgan StanleyAnalyst Color Price Target Analyst Ratings

Latest Ratings

MTJP MorganUpgrades
WFCCredit SuisseUpgrades40.0
VYGRHC Wainwright & Co.Initiates Coverage On12.0
AEORBC CapitalUpgrades30.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at