In a report published Wednesday, MLV & Co analyst Chad Mabry reiterated a Buy rating on Contango Oil & Gas Company MCF, but lowered the price target from $57.00 to $49.00.
In the report, MLV & Co noted, “Less-than-stellar quarterly update from MCF highlighted by a miss on earnings, lower-than-expected production guidance, and a lack of positive operational datapoints. Looking into 2015, a declining growth profile could dampen investor enthusiasm for the stock. Our NAV-based price target declines to $49 (from $57) on a lower production forecast. However, we remain buyers on a strong balance sheet and compelling valuation, noting that we value shares at ~$41 on a proved-only basis. Upcoming well results from the company's new areas (expected Q1'15) could cause investors to be more willing to pay for upside.”
Contango Oil & Gas Company closed on Tuesday at $37.99.
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