MLV Maintains Buy On Miller Petroleum, Sees 92% Upside For The Stock
In a research report issued today, MLV analyst Chad Mabry maintained a Buy rating on Miller Petroleum (NYSE:MILL) with a price target of $6.00, which represents a potential upside of 92% from where the stock is currently trading.
Mabry noted, “We’re adjusting our production model for a lower-than-expected contribution from RU-9 (our prior forecast was an IP rate of ~500 Bo/d) and a revised drilling program at Redoubt (see below). As a result, our production forecast for fiscal 2015 slides to 4.1 MBoe/d (from 4.3) and fiscal 2016 slides to 5.9 MBoe/d (from 6.4). No material change to our NAV-based price target of $6.00 as we had previously accounted for setbacks at the well.”
The analyst added, “We are maintaining our Buy rating on a combination of attractive relative valuation and our conviction that new management is addressing operational issues at the company.”
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 -27.1% and a 10.3% success rate. Mabry has a -27.6% average return when recommending MILL, and is ranked #3367 out of 3377 analysts.