UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on PDC Energy on 2015 Guidance

In a report published Tuesday, Credit Suisse analyst Mark Lear reiterated an Outperform rating on PDC Energy PDCE, but lowered the price target from $69.00 to $65.00. In the report, Credit Suisse noted, “We reiterate our Outperform rating on PDCE and revise our target price to $65 (from $69) as improving capital efficiency is offset by reduced Utica activity and lower modeled natural gas prices. PDCE introduced 2015 guidance, expecting to spend $557MM, a 14% decrease yr/yr and 20% below consensus to deliver 51% organic production growth (10% above consensus). Despite a reduction in our 2014/15/16 EPS estimates by -3%/-23%/-23% as higher production is offset by lower natural gas price estimates, we expect the stock to react positively. Guidance demonstrates the company's resilience in the volatile commodity price environment, and we argue the steep discount to the E&P peer group is unwarranted.” PDC Energy closed on Monday at $28.35.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit SuisseMark Lear
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