NFX - Upgrade

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

NFX - Upgrade

Post by dan_s »

Newfield Exploration Co
To round off this list, we have another Texas-based energy stock- one that has jumped 25% in the last month. The stock had been performing badly, with prices touching as low as $23.4 in March. However, high oil prices pushed investors back into gear and prices are now rising fast. Indeed, Piper Jaffray's David Kistler is forecasting over 50% upside potential for this "strong buy" stock, which focuses on 'liquids-rich unconventional resource play' mainly in the U.S.

If we turn to our data, we can see that five-star RBC Capital analyst Brad Heffern has also just reiterated his Newfield (NFX - Get Report) buy rating. He likes its exposure to the 'prolific' Anadarko Basin, and "expects that Newfield will have strongly economic inventory in the Anadarko for years to come." He has a $33 price target on the stock.

Plus: "Newfield has also historically had a cash flow and returns-focused mentality, which we think plays perfectly into current investor preferences. We could easily imagine Newfield spending below cash flow in the future in order to fund capital returns to shareholders."

Heffern is one of ten analysts who have published buy ratings on the stock in the last three months. In the same time period, only two analysts have stayed on the sidelines. The $37 average analyst price target works out at 25% upside from the current share price.
Dan Steffens
Energy Prospectus Group
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