PDC Energy (PDCE) - Other Analysts' Opinions

[dan_s]

Since PDC announced Q3 results two solid energy sector analysts have issued updated reports / valuations on PDCE.
> Stifel Nicolaus rates it a BUY with a price target of $81.00 < My current valuation
> BMO Capital rates it a HOLD with a price target of $55.00

The stock is trading at $43.50 today, which begs the question "Why does BMO rate it a HOLD if they think it has 26% upside?"

How can smart guys looking at the same company come up with such different valuations?
1. They are forced to use the commodity price decks of their firms.
2. Some analysts won't rate a stock a lot higher than where it is trading today, regardless of what they think about it personally.

We will be sending out an updated profile on PDCE tomorrow morning.