5 Top Oil and Gas Stocks Analysts Want You to Buy Now

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Enbridge (and Spectra Energy)

When Enbridge Inc. (NYSE: ENB) and Spectra Energy Inc. (NYSE: SE) merge, they will create the largest energy infrastructure player in North America by enterprise value. 24/7 Wall St. showed definitively that analysts are largely in favor of this combined company. Goldman Sachs raised Enbridge to Buy with a $48 price target. Spectra Energy, the company being acquired, was downgraded to Outperform from Strong Buy with a $44 price target at Raymond James. Enbridge’s American depositary shares were last seen at $44.53, and Spectra Energy shares closed at $42.80 on Friday.

Callon Petroleum

While Callon Petroleum Co. (NYSE: CPE) may have been down on Friday with a weak market, the week brought several positive research notes. Its shares were raised to Outperform from Sector Perform at RBC Capital Markets and its price target was raised to $18 from $15 (versus a $15.46 prior close). The price target was raised at FBR Capital to $19 from $17, and the firm KLR raised its target price to $21 from $18 on the same day. The stock closed down more than 3% at $15.02 on Friday. It has a 52-week trading range of $4.21 to $15.91 and a consensus price target of $16.77.

Chesapeake Energy

Wunderlich raised Chesapeake Energy Corp. (NYSE: CHK) to Buy from Hold with a $10 price target (versus a $7.74 close) on September 9. The firm sees Chesapeake as having a better financial position and having maintained strong operations during the oil and gas crash. Additional catalysts were also cited for more upside. Chesapeake shares were down 1.5% at $7.62 on Friday’s close. The consensus price target is $5.45 now, and the 52-week range is $1.50 to $9.55. Keep in mind that this upgrade follows a massive recovery, and we have outlined the driving force pushing its shares higher.

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ConocoPhillips

This might not feel like the biggest analyst upgrade in the world. On September 7, Jefferies raised ConocoPhillips (NYSE: COP) to Hold from Sell, and the firm’s price target was lifted to $40 from $37. That was versus a $41.00 prior close, and ConocoPhillips shares ended the week at $42.55. The Jefferies upgrade was a valuation call based on ConocoPhillips being one of the most aggressive cost cutters in the sector, and the firm thinks it can maintain its cash cycle at $49 per barrel in oil. What matters here is that the consensus price target was $52.00 on Friday, a tad higher than in prior weeks. ConocoPhillips had a 52-week range of $31.05 to $57.24.