Energy XXI Is Oversold At Current Levels, Says Canaccord

In a research report released Monday, Canaccord Genuity analyst Stephen Berman maintained a Buy rating on Energy XXI (NASDAQ:EXXI) with a $7 price target, following the company’s fiscal second-quarter results, posting adjusted EPS/CFPS of ($0.35)/$1.76 vs. Canaccord’s estimates of ($0.29)/$1.54 and consensus of ($0.32)/$1.43.

Berman noted, “We like EXXI for its oil-weighted asset base, the horizontal drilling program in the Gulf of Mexico (GOM), a history of generating free cash, and potential upside from its exploration program. The company is focused on enhancing liquidity, and we believe that the stock is oversold at current levels.”

Energy XXI (Bermuda) Limited is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and on the Gulf of Mexico.

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