New Upside Energy Targets (SE, RRC, DVN, XOM)
By Eric Chenoweth of Morningstar The energy sector has some key players trading at a discount to a longer-term fair value. Morningstar highlights this with new updated price targets in the energy patch, and some of the highlighted stocks are…
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By Eric Chenoweth of Morningstar
The energy sector has some key players trading at a discount to a longer-term fair value. Morningstar highlights this with new updated price targets in the energy patch, and some of the highlighted stocks are Spectra Energy Corp. (NYSE: SE), Range Resources Corp. (NYSE: RRC), Devon Energy Corp. (NYSE: DVN), and ExxonMobil Corp. (NYSE: XOM). The targets are quoted:
- While the current outlook for supply/demand fundamentals favors oil, we believe that higher full-cycle shale gas extraction costs and potential fuel price arbitrage will better balance the scales with gas in the longer term.
- However, in the near term, we are cautious on smaller E&P firms with high operating/financial leverage as they may struggle to weather temporarily depressed gas prices and/or potentially higher interest rates during the next 12-24 months
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
