MLV Cuts Magnum Hunter Resources Price Target On Widening Gas Price Differentials
In a research report released Monday, MLV analyst Chad Mabry reiterated a Buy rating on Magnum Hunter Resources (NYSE:MHR) with a $9 price target, which still represents a potential upside of 89% from where the stock is currently trading.
Mabry explained his new price target saying, “The company’s strategy is aligning nicely as it enters 2015. Portfolio high-grading and front-end loaded capital spending set the stage for tremendous growth for the Appalachian pure-play. While MHR’s shift from oil to gas is looking increasingly savvy in light of recent market movements, it hasn’t been totally immune from widening gas price differentials. Adjustments to our model take our NAV-based price target to $9 (from $10). We remain buyers of MHR on what we view to be an undervalued position in the sweet spot of the Utica and Marcellus plays.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chad Mabry has a total average return of -26.3% and a 11.5% success rate. Mabry has a -23.6% average return when recommending MHR, and is ranked #3355 out of 3365 analysts.