On May 13 Siebert Williams Shank analyst Gabriele Sorbara upgraded Callon Petroleum (NYSE: CPE) from Hold to Buy with a price target of $52.00. < His previous price target was $20.
Gabriele is one of the most conservative energy sector analysts that submits reports to TipRanks. His price targets are often the lowest for each company. My guess is that his firm FINALLY let him start using more realistic commodity prices for his estimates.
Callon is working off some "Bad Hedges" in 2021 and they should still generate over $300 million of free cash flow from operations this year. Looking forward to 2022 you can see the significant upside for CPE. With realized commodity prices of $60/bbl oil, $2.75/mcf of ngas and $21.00/bbl of NGLs, Callon should generated net income of $10.70 per share and operating cash flow of $19.69 per share next year.
Forecasts from TipRanks based on the average of nine analysts reports dated after March 1, 2021:
2021 EPS of $3.61 and operating CFPS of $15.32
2022 EPS of $9.23 and operating CFPS of $19.28
Callon Petroleum (CPE) Upgrade - May 15
Callon Petroleum (CPE) Upgrade - May 15
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group