In a research report issued today, Roth Capital analyst John White maintained a Buy rating on shares Halcon Resources Corp (NYSE:HK) and raised the price target to $2.75 (from $1.85), after the company announced the exchange of new third lien secured notes for existing senior notes, resulting in a significant reduction in total debt.
White wrote, “A large debt reduction and an effective increase in maturities, does it get any better than this? Yes it does. Interest expense is lower due to the exchange ratio. With the lower interest expense, our EPS estimates increase. For 3Q 2015, our projected loss of $(0.03) improves to $0.01, our 4Q 2015 loss of $(0.04) is increased to $0.01 and the full year loss of $(3.53) is reduced to a loss of $(3.45).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John White has a total average return of -3.1% and a 43.8% success rate. White has a -3.8% average return when recommending HK, and is ranked #2917 out of 3743 analysts.
Out of the 10 analysts polled by TipRanks, 2 rate Halcon Resources stock a Buy, 4 rate the stock a Hold and 4 recommend to Sell. With a return potential of 83.2%, the stock’s consensus target price stands at $2.11.