Magnolia Oil & Gas (MGY) Valuation Update - Jan 8

[dan_s]

MGY closed at $22.23 on January 6.

I have updated my forecast/valuation model for the production information that the Company provided on January 4.

I have lowered my valuation by $2 to $30/share.

TipRanks: "In the last 3 months, 5 ranked analysts set 12-month price targets for MGY. The average price target among the analysts is $32.60. The 5 price targets range from $28 to $39.

MGY is in the Sweet 16 because it generates a lot of free cash flow and it has several years of more than 10% annual production growth locked in that will be funded entirely by operating cash flow. In addition to paying a small dividend it is aggressively buying back stock.