Credit Suisse started Callon Petroleum Co. (NYSE: CPE) with an Outperform rating. The May 25 call came with a new price target of $14, which compared with an $11.15 prior closing price. Callon shares closed trading at $11.47 on Friday, but they were at $11.74 on Thursday’s close. The new consensus analyst price target was $13.47, and its 52-week trading range is $4.21 to $12.00.
Energy Transfer Partners
Energy Transfer Partners L.P. (NYSE: ETP) was raised to Buy from Neutral by Goldman Sachs on May 23. The firm’s price target was raised to $40 from $33 and compared with a $36.53 prior close. The master limited partnership (MLP) ended the week at $35.69 a share. The double-digit yield equivalent here also makes the potential upside much higher. This ongoing merger fiasco continues to act as an overhang. Energy Transfer has a $39.87 consensus target price, and the units have a 52-week range of $18.62 to $56.59.
Sterne Agee CRT raised Noble Energy Inc. (NYSE: NBL) to Buy from Neutral with a $47 price target on May 25. The prior close was at $35.33, and shares traded at $35.88 on Friday’s close. The consensus price target was $41.56 before the call (up to $41.73 on Friday), and the 52-week range is $23.77 to $46.93. Also, Nomura raised its target price to $41 based on deal upside in the Israeli natural gas field.
Though Pacific Ethanol Inc. (NASDAQ: PEIX) is focused on ethanol, that is now a key component in the oil and gas mix for vehicles. The stock was started with a Buy rating at Rodman & Renshaw on May 24, but it was assigned a whopping $11 price target. This was up well over 100% from the previous $4.65 closing price, but shares surged during the week and the stock closed at $6.07 on Friday. Pacific Ethanol had a consensus analyst target of $9.17 before the call, rising to $9.63 on Friday, and a 52-week range of $2.41 to $12.54. Another amazing issue is that this massive upside would not even mark a 52-week high.
Three analysts raise their targets on Parsley Energy Inc. (NYSE: PE) this past week. The calls came after a recently upsized secondary offering of 8.25 million shares. Merrill Lynch took a positive stance on the stock, reiterating a Buy rating with a $27 price objective, versus a $25.70 share price at that time. The analyst calls with higher price targets were seen as follows:
- Nomura reiterated a Buy rating and raised its target to $31 from $25.
- Topeka has a Buy rating and raised its target to $29 from $27.
- KeyBanc has an Overweight rating and raised its target to $29 from $28.
Schlumberger Ltd. (NYSE: SLB) was added to the prized Conviction Buy list by Goldman Sachs on May 23, and the firm sees some 29% upside. It also sees Schlumberger being best positioned of its peers in the oil patch, particularly now the rival merger was blocked. The consensus price target is $87.74, and the 52-week range is $59.60 to $92.61. Shares closed trading at $77.17 on Friday.
U.S. Silica Holdings
RBC Capital Markets raised U.S. Silica Holdings Inc. (NYSE: SLCA) to Outperform from Market Perform on May 23. This came with a $33 price target, up from a $26.77 prior close. RBC believes that the market is not factoring in the company’s earnings power ahead. Jefferies had talked up U.S. Silica before as well, calling it the best positioned for upside among its peers.
Other top oil and gas stories from this past week:
- Four top MLPs could keep running after big gains.
- Major oil stocks sent short sellers running home to mama.
- Nomura stays bullish on oil and gas.
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