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Roth Capital Reduces Magellan Petroleum Price Target In Light Of Q1:15 Update


Roth Capital analyst Joe Reagor reiterated a Buy rating on Magellan Petroleum (NASDAQ:MPET), but reduced his price target to $3.75 (from $4.25), following the company’s financial results for fiscal first-quarter of 2015, showing a loss of $0.07 per share, slightly better than Roth’s $0.09 loss estimate. Revenues of $1.6 million were slightly above Roth’s $1.5 million estimate due to better than expected oil price realizations in the quarter.

Reagor noted, “During the quarter the company made significant progress at Poplar, reinforcing our view that the company has an undervalued, asset rich portfolio.” The analyst explained his new price target saying, “Based on a lower cash balance, reduced valuation for MPET’s U.K. acreage, and a decrease in the value of marketable securities, we are cutting our price target from $4.25 to $3.75. However, we still believe that MPET has significant potential to drive shareholder value through its three projects and thus we are maintaining our Buy rating.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Reagor has a total average return of -9.4% and a 28.2% success rate. Reagor has a -26.6% average return when recommending MPET, and is ranked #3286 out of 3393 analysts.