gastar
Re: gastar
In a report published Monday, September 29, MLV & Co analyst Chad Mabry reiterated a Buy rating on Gastar Exploration (NYSE: GST), but lowered the price target from $11.00 to $9.00.
In the report, MLV & Co noted, “GST recently closed a common stock offering of 17.0 million shares (19.55 including the shoe). Net proceeds of $101.2 million ($116.4 with the shoe) should ensure that the company has sufficient liquidity to undertake its upcoming capital campaign.
"Despite dilution of 28% (32% with the shoe), we see several positives from the offering: (1) removes the near-term liquidity risk, (2) improves balance sheet metrics, and (3) increases institutional interest. We view all of these factors as integral toward GST's march to mid-cap territory.
"We're reaffirming our Buy rating but trimming our target to $9 (from $11). Dilution is the culprit, partially offset by better-than-expected 2015 production guidance and slight upward revisions to our valuation of the company's Hunton position. With the liquidity risk removed, we believe GST is positioned to outperform as it continues to delineate its position in the Mid-Continent Hunton and Stack oil plays... both of which offer ample upside from current levels.”
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My updated forecast for GST is available under the Watch List Tab. My Fair Value Estimate is $9.25, compared to First Call's Price Target of $9.79.
In the report, MLV & Co noted, “GST recently closed a common stock offering of 17.0 million shares (19.55 including the shoe). Net proceeds of $101.2 million ($116.4 with the shoe) should ensure that the company has sufficient liquidity to undertake its upcoming capital campaign.
"Despite dilution of 28% (32% with the shoe), we see several positives from the offering: (1) removes the near-term liquidity risk, (2) improves balance sheet metrics, and (3) increases institutional interest. We view all of these factors as integral toward GST's march to mid-cap territory.
"We're reaffirming our Buy rating but trimming our target to $9 (from $11). Dilution is the culprit, partially offset by better-than-expected 2015 production guidance and slight upward revisions to our valuation of the company's Hunton position. With the liquidity risk removed, we believe GST is positioned to outperform as it continues to delineate its position in the Mid-Continent Hunton and Stack oil plays... both of which offer ample upside from current levels.”
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My updated forecast for GST is available under the Watch List Tab. My Fair Value Estimate is $9.25, compared to First Call's Price Target of $9.79.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: gastar
Wait for oil price to stabilize. Look like a lower open on Monday.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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wilmawatts
- Posts: 685
- Joined: Fri Apr 01, 2011 10:12 am
Re: gastar
Difficult to catch a falling knife.
But this one will eventually turn into a rocket. Difficult to catch a rocket also
Good assets
But this one will eventually turn into a rocket. Difficult to catch a rocket also
Good assets