CLR and OAS recommended by Goldman Sachs

[dan_s]

This is why you pay me the Big Bucks, to find this stuff before Goldman recommends it to their millions of clients. All of our Bakken companies are going to report outstanding Q3 results. - Dan

SAN FRANCISCO (MarketWatch) — Energy stocks edged higher on Tuesday, snapping a two-day decline with Oasis Petroleum Inc. one of the top gainers following nods of approval from Goldman Sachs.

Oasis shares rallied 5%. Goldman Sachs said it viewed Oasis as a “best in class” stock among small- and midcap exploration and production companies in a report the investment bank released Monday.

In a separate report released Tuesday, Goldman showed optimism about North Dakota’s Bakken shale, initiating coverage of Oasis and Continental Resources Inc. and rating both stocks a buy on potential for growth and on valuation, among other positives.

They set a price target of $130 on Continental stock, and $65 on Oasis Petroleum stock. <Slightly above my Fair Value Estimates but definitely within reach.

Shares of Continental Resources rose 2.8%

Despite concerns following a slower pace of production in recent months, the Bakken still has legs and will surprise investors, the Goldman analysts said. [Everyone needs to understand that North Dakota production growth ALWAYS slows in the 2nd quarter due to "Spring Breakup". It happens every year.]

“We came away from our trip to North Dakota last week with greater confidence in our outlook that Bakken production/completion activity will likely exceed Street expectations,” the analysts said.