Magnolia Oil & Gas Corporation (MGY) received a Buy rating and a $15 price target from Oppenheimer analyst Tim Rezvan today. The company’s shares opened today at $12.01.
Rezvan noted:
“On 1/7/19, we initiated coverage of Magnolia Oil & Outperform rating and a $15 price target. Magnolia’s FCF yield thesis is unique, compelling and sustainable, in our view, and equity valuations are attractive at the current level (3.6x 2019E EV/EBITDA). E&P SPACs have had mixed success in recent years, but we believe this seasoned management team has a productive asset base, a prudent growth strategy and near-term exploration catalysts. Importantly, senior management’s prior history shows its ability to be prudent stewards of capital and to maintain underlevered balance sheets through commodity price cycles.”
According to TipRanks.com, Rezvan is a 2-star analyst with an average return of 0.4% and a 49.1% success rate. Rezvan covers the Basic Materials sector, focusing on stocks such as Whiting Petroleum Corp, Gulfport Energy Corp, and Par Pacific Holdings.
Magnolia Oil & Gas Corporation has an analyst consensus of Strong Buy, with a price target consensus of $15.50.
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The company has a one-year high of $15.23 and a one-year low of $9.69. Currently, Magnolia Oil & Gas Corporation has an average volume of 1.16M.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MGY in relation to earlier this year.
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Magnolia Oil & Gas Corp. engages in oil and gas exploration and production business. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on July 31, 2018 and is headquartered in Houston, TX.
