In a report released today, Gabriele Sorbara from Williams Capital reiterated a Buy rating on Cimarex Energy (XEC), with a price target of $104. The company’s shares closed yesterday at $67.29.
Sorbara wrote:
“We maintain our Buy rang as XEC has one of the cheapest valua ons in its peer group. Despite the weak pricing backdrop for natural gas and NGLs, we forecast XEC with growing free cash flow in the coming years. Key Points 2019 capex reaffirmed, while producon tweaked up for 1Q19 beat. XEC reaffirmed its 2019 total capex at $1.41-$1.52 billion (including $60.0-$70.0 million for midstream investments). With the 1Q19 producon be at across all products, XEC raised its 2019 producon guidance by 2.9% (a t the mid- point) to 260.0-275.0 Mboe/d (from 250.0-270.0 Mboe/d) and oil guidance by 1.2% (at the mid-point) to 80.0-88.0 Mboe/d (from 78.0-88.0 Mboe/d). The revised guidance represents 17.1%-23.9% total producon gro wth and 18.2%-30.0% oil producon growth.”
According to TipRanks.com, Sorbara ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -8.1% and a 35.8% success rate. Sorbara covers the Basic Materials sector, focusing on stocks such as Gulfport Energy Corp, Extraction Oil & Gas, and Oasis Petroleum Inc.
Currently, the analyst consensus on Cimarex Energy is a Moderate Buy with an average price target of $96.33.
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Based on Cimarex Energy’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $312 million. In comparison, last year the company had a net profit of $184 million.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is neutral on the stock.
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Cimarex Energy Co. is an independent oil and gas exploration and production company. Its activities include drilling, completing and operating wells. It operates through the following areas: Permian Basin, Mid-Continent, and Others in Oklahoma, Texas and New Mexico. The company was founded by F. H. Merelli in February 2002 and is headquartered in Denver, CO.
