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NEW YORK (TheStreet) -- Barclays trimmed its price target on Gulfport Energy (GPOR) to $73 and set an "overweight" rating. The firm noted expectations for flat volumes in the second quarter. [My take is that production growth will accelerate in Q3 up to an exit rate near 60,000 boepd. First quarter production was 27,088 boepd. - Dan]
Separately, TheStreet Ratings team rates GULFPORT ENERGY CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GULFPORT ENERGY CORP (GPOR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
GPOR's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 114.8%. Growth in the company's revenue appears to have helped boost the earnings per share. [Based on my forecast model, revenues will be up more than 150% year-over-year in 2014 and double again in 2015. - Dan]The gross profit margin for GULFPORT ENERGY CORP is currently very high, coming in at 77.64%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 70.04% significantly outperformed against the industry average.Net operating cash flow has significantly increased by 346.05% to $156.15 million when compared to the same quarter last year. In addition, GULFPORT ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of 16.30%.The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 85.3% when compared to the same quarter one year prior, rising from $44.56 million to $82.56 million.Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.In my opinion, the market over-reacted to the reduction in Gulfport's production guidance for 2014. All they have done is slowed down to re-group with a new management team and they have pushed their growth out a few months. It may flop around in the $60 range for awhile, but this one should be a big winner for us in the 2nd half of this year. - Dan