Market Overview

Credit Suisse On Oasis Petroleum: 'Too Cheap To Ignore'

Share:

Oasis Petroleum Inc. (NYSE: OAS) is an independent exploration and production company that offers investors one of the "most attractive" risk to reward profiles within the entire energy and petroleum space, according to Wall Street's newest bull analyst.

The Analyst

Credit Suisse's Betty Jiang initiated coverage of Oasis Petroleum's stock with an Outperform rating and $11 price target.

The Thesis

Oasis Petroleum's stock is trading at a valuation that implies it's only a Bakken pure-play, which means the stock comes with a free option on its exposure to Permian after buying more acreage from Forge Energy for $946 million in December, Jiang said in a note. The stock is also trading at roughly the same enterprise value today as it has prior to the deal and a "much steeper" NAV (net asset value) discount today of 0.51 times.

Investors may also not be fully appreciated the company's non-core Bakken asset sales, which could fetch $500 million (more than $1.60 per share) in a sale and could come in the first half of 2018, the analyst said. Beyond the first half of 2018, the stock could move higher if the company shows at the very least "adequate" Permian operating performance.

Price Action

Shares of Oasis Petroleum closed down 2.3 percent at $7.72.

Related Links:

Benzinga's Top Upgrades, Downgrades For February 8, 2018

The End-Of-The-Year Oil Trade Is Spreading To Leveraged ETFs

Latest Ratings for OAS

DateFirmActionFromTo
Feb 2020SunTrust Robinson HumphreyMaintainsSell
Feb 2020Raymond JamesMaintainsOutperform
Jan 2020SusquehannaDowngradesPositiveNegative

View More Analyst Ratings for OAS
View the Latest Analyst Ratings

Posted-In: Bakken Betty Jiang Credit Suisse OilAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (OAS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DXCMorgan StanleyReinstates38.0
CTSHMorgan StanleyReinstates59.0
CREEMorgan StanleyInitiates Coverage On62.0
BKNGMorgan StanleyMaintains2,050.0
ACNMorgan StanleyReinstates240.0
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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 vipaccounts@benzinga.com