Canaccord Slashes Price Target for Whiting Petroleum Corp Following Recent Dilution
Canaccord Genuity analyst Stephen Berman came out today with a research note on Whiting Petroleum Corp (NYSE:WLL), reducing the price target to $35 (from $44), while maintaining a Buy rating on the stock. The decreased price target comes in response to the company's plans to issue $1.75 billion in debt and 35 million shares of common stock. Whiting Petroleum shares are currently trading at $30.94, up $0.03 or 0.10 percent.
Berman noted, "Our $35 price target represents a 15% discount to a ~$41 NAV. Our prior $44 target reflected the same discount to a ~$52 NAV. The decrease in NAV is due to the dilutive effects of the additional common shares and convertible notes." Furthermore, "While the dilution from the equity and convertible notes offerings lowers our estimates and price target, the significantly improved liquidity profile combined with a high-quality asset base keep us positive on WLL."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Stephen Berman has a total average return of -16.3% and a 33.8% success rate. Berman has a -14.0% average return when recommending WLL, and is ranked #3529 out of 3546 analysts.