Credit Suisse analyst Mark Lear was out today with a research note on Whiting Petroleum Corp (NYSE:WLL), reiterating an Outperform rating, while reducing the price target to $12.00 (from $14.00), after the oil and gas company posted mixed second-quarter results, with production coming in below consensus and 2016 guided lower. However, offsetting positives include the monetization of North Ward Estes and an activity ramp heading into YE:16.
Lear noted, “WLL reported 2Q16 production at the low end of quarterly guidance, but expects production to level off in 2H16 adjusting for asset sales. We adjust our 2016/2017/2018 EPS estimates to -$1.93/-$0.82/-$0.16 from -$1.67/-$0.67/-$0.02 to reflect updated cost and production guidance.”
“Given the updated 2017 commentary, we believe WLL can deliver 6% 4Q17/4Q16 production growth on a balanced budget at the CS deck ($55/bbl),” the analyst added.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Lear has a yearly average return of 10.4% and a 36% success rate. Lear has a -14.6% average return when recommending WLL, and is ranked #644 out of 4087 analysts.
Out of the 21 analysts polled by TipRanks, 15 rate Whiting Petroleum stock a Hold, while 6 rate the stock a Buy. With a return potential of 62.2%, the stock’s consensus target price stands at $12.07.
Shares of Whiting Petroleum are currently trading at $7.40, up $0.56 or 8.19%.