VTLE slammed by Wolfe Research

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Fraser921
Posts: 3240
Joined: Mon Mar 22, 2021 11:48 am

VTLE slammed by Wolfe Research

Post by Fraser921 »

https://www.marketbeat.com/instant-alerts/nyse-vtle-initiated-coverage-2024-07-18/
Last edited by Fraser921 on Thu Jul 18, 2024 5:50 pm, edited 1 time in total.
dan_s
Posts: 37275
Joined: Fri Apr 23, 2010 8:22 am

Re: VTLE slammed

Post by dan_s »

Your definition of "slammed" must be much different than mine.

At the time of this post VTLE was trading at %45.90 was down 1.06% and still up YTD.

Text of the article you posted:
Research analysts at Wolfe Research assumed coverage on shares of Vital Energy (NYSE:VTLE - Get Free Report) in a research report issued on Thursday, Briefing.com reports. The firm set an "underperform" rating and a $50.00 price target on the stock. Wolfe Research's price objective would suggest a potential upside of 7.78% from the stock's current price.

VTLE has been the topic of several other research reports.
> JPMorgan Chase & Co. boosted their price target on shares of Vital Energy from $48.00 to $51.00 and gave the company an "underweight" rating in a research report on Thursday, April 11th.
> Piper Sandler reduced their price target on shares of Vital Energy from $54.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, April 19th.
> Truist Financial (Neal Dingmann is the highest rated energy sector analyst by TipRanks) reduced their price target on shares of Vital Energy from $86.00 to $77.00 and set a "buy" rating on the stock in a research report on Friday, April 5th.
> Stifel Nicolaus boosted their price target on shares of Vital Energy from $70.00 to $75.00 and gave the company a "buy" rating in a research report on Tuesday, April 23rd.
> Finally, Wells Fargo & Company reduced their price target on shares of Vital Energy from $57.00 to $54.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 14th.
> Three analysts have rated the stock with a sell rating, three have given a hold rating and five have assigned a buy rating to the company.

According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $58.45.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37275
Joined: Fri Apr 23, 2010 8:22 am

Re: VTLE slammed

Post by dan_s »

Vital reported operating cash flow of $260.9 million ($7.12/share) in Q1 2024.
My 2024 forecast, which is very close to TipRanks' forecast, shows full year 2024 operating cash flow of $1,017.6 million ($27.76/share) for the year.

Vital is free cash flow positive. < 94% of Vital's 2024 forecast revenues are from liquid sales and 98% of 2H 2024 oil is hedged, so FCF is locked in.

Vital's production increased 17.1% year-over-year in 2024 and they should generate close to 25% YOY production growth in 2024.

Most of the Wall Street Gang believes that Vital's leasehold in the Permian Basin is mostly Tier Two acreage, yet their well results have been strong.

The current share price of less than 2X operating cash flow per share is "puzzling" to me.

Our good friend, the "Petroleum Economist" has VTLE as one of his Top Five picks.
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 3240
Joined: Mon Mar 22, 2021 11:48 am

Re: VTLE slammed by Wolfe Research

Post by Fraser921 »

It's not often you see an outright sell (underperform) from a research house. Well known Wolfe Resources put out an underperform on the name.

Don't shoot me, I'm just the messenger. I owned this name prior to their last acquisition when it was trading in the 60's

60 to 45 in less than a year wasn't a soft landing
dan_s
Posts: 37275
Joined: Fri Apr 23, 2010 8:22 am

Re: VTLE slammed by Wolfe Research

Post by dan_s »

Note that their underperform rating was followed by a price target above the current price.
Dan Steffens
Energy Prospectus Group
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