Energy Business

Calls For 50% to 100% Upside in Energy Stocks (AREX, MHR, NOG, OAS, REXX, SFY, VOG, GDP)

It is not too often that analysts call for stocks to rise 50%, let alone call for them to rise 100%.  That is happening as Canaccord Genuity has initiated coverage of many second tier oil and gas companies with buy ratings.  The implied upside is frankly off the charts as far as price targets, but what is amazing is that the upside targets are often not that far off from the pack of analysts and some of the stocks have even seen these prices or come close over the last year.

Approach Resources Inc. (NASDAQ: AREX) was started as Buy with a $38.00 price target based upon catalysts driving the horizontal Wolfcamp potential. The current price is $21.58 and the 52-week range is $9.83 to $34.93 and Thomson Reuters has a consensus price target of $31.69.

Magnum Hunter Resources Corp. (AMEX: MHR) was started as Buy with $9.00 price target as the sum of parts analysis is attractive due to a relative mispricing of assets.  At $4.62, the 52-week trading range is $3.72 to $8.66 and Thomson Reuters has a consensus price target of $8.68.

Northern Oil and Gas (AMEX: NOG) was started as Buy with $37.00 target as the firm sees the company having blowout earnings in the second half due to its accelerated Bakken presence.  At $22.41, the 52-week range is $11.72 to $33.98 and Thomson Reuters has a consensus price target of $33.40.

Oasis Petroleum Inc. (NYSE: OAS) was started as Buy with a $36.00 based on the company positioning its asset base to accelerate growth in 2012.  At $27.37, the 52-week range is $16.74 to $36.15 and Thomson Reuters has a consensus price target of $36.19.

Rex Energy Corporation (NASDAQ: REXX) was started as Buy with a $18 target based upon meaningful catalysts to “drive second-half alpha generation.”  At $13.93, the 52-week range is $9.67 to $14.33 and Thomson Reuters has a consensus price target of $16.62.

Swift Energy Company (NYSE: SFY) was started with a Buy rating and a $52.00 price target based upon the thesis that the company’s assets are undervalued and have a significant resource potential.  At $32.56, the 52-week range is $25.08 to $48.19 and Thomson Reuters has a consensus price target of $48.77.

Voyager Oil & Gas, Inc. (AMEX: VOG) was started as Buy with a $5.00 price target as the firm called this “a high-beta play for a second-half Bakken bounce back.”  At $2.39, the 52-week range is $2.20 to $7.75 and Thomson Reuters has a consensus price target of $5.29.

Goodrich Petroleum Corporation (NYSE: GDP) was started as Buy with a $31.00 target after management meetings have highlighted the company’s asset quality and it sees a disproportionate equity value upside.  At $15.49, the 52-week range is $12.28 to $23.80 and Thomson Reuters has a consensus price target of $24.75.

JON C. OGG