Note from Raymond James on March 11

[dan_s]

"Aside from our usual lookback items (earnings themes, beat/miss heat map, and relative stock performance analysis), we are taking this opportunity to update our models for the much higher current oil strip (nearly $62/bbl 2021 average vs. ~$52/bbl late February at start of 4Q earnings). The strong move in strip also pushes up valuations (even under identical EV/EBITDA multiples), so we are raising our price targets across the board accordingly. Please refer to the latest published note on individual companies for more detail regarding valuation and price targets. Although earnings and valuations are going up, production and capital budgets are not with only a few names adding activity following the resurgence. This is actually the first theme we highlight in this report as well as being the reason for the second: group to generate an incredible $32B of FCF and growing returns at strip prices."


Here are Raymond James' updated price targets as of 3/11/2021 for the Sweet 16 they follow
AR = $13
XEC = $96
DVN = $36
EOG = $104
FANG = $125
MTDR = $35
PXD = $235