UPDATE: Stifel Upgrades Penn Virginia On Good Entry Point

In a report published Friday, Stifel analyst Amir Arif upgraded the rating on

from Hold to Buy, and named a $23.00 price target. In the report, Stifel noted, “We would be buyers of PVA, especially at these levels, with over 50% upside potential expected in the coming year and believe that the recent pullback provides a good entry point. "Improving oil volume growth in 2H14 should turn the name around as is, and the $313 mm convertible preferred offering completed earlier this week allows for the acceleration of high margin oil volume growth in 2015, making the name even more attractive as the 2015E EV/EBITDA improves from 4.3x to 3.8x, in our view. As a result, we expect the stock to get to $23/share in 12 months, reflecting a 5.1x 2015E EV/EBITDA, relative to the group average of 6.6x, even after factoring in the dilution potential from the two outstanding converts. "With the recent pullback, a 15-year inventory in a good part of the Eagle Ford oil window, 2015 drilling activity being accelerated through the convertible offering's proceeds, and the FCF outspend narrowing over the coming years, we believe that PVA is well positioned to make new highs before the year is over, once 2H14 oil volume growth begins to materialize.” Penn Virginia closed on Thursday at $14.86.