PXP upgrade by Goldman Sachs

dan_s · Post by **dan_s** » Thu Apr 28, 2011 8:33 pm

Goldman Sachs lists PXP as one of their top six picks in the energy sector.

Plains Exploration & Production(PXP) is a small-cap oil-and-gas company that Goldman Sachs likes because of both its ownership of oil properties and production capabilities.
The company owns oil- and gas-producing on-shore properties from California to the Gulf Coast.
Goldman reiterated its conviction-list "buy" rating on the firm in a Feb. 25 analysts report noting that a strong fourth quarter of 2010 and early production results in the company's fully-owned (oil shale) Eagle Ford Shale project helped build confidence. Asset sales have also helped buttress the balance sheet.
Its first-quarter earnings are due May 5.
Plains trades at 5.4 times Goldman's 2011 estimated earnings of $2.07 per share (which includes several adjustments), versus the average of 7.3 times earnings for its peers.
Given Goldman's $48 six-month price target, and its current price of about $35.50, it has a potential premium of around 35%.