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Bonanza Creek (BCEI)
Posted: Fri May 23, 2014 12:41 pm
by dan_s
Bonanza Creek price target raised to $66 from $61 at Credit Suisse
Credit Suisse raised Bonanza Creek's price target to $66 following the announcement it acquired 86.4K gross acres and improving recoveries on new completions. Shares are Outperform rated.
I am working on my forecast model now. - Dan
Re: Bonanza Creek (BCEI)
Posted: Fri May 23, 2014 1:04 pm
by dan_s
Bonanza Creek Energy (BCEI): An updated Net Income & Cash Flow Forecast model, which includes the impact of the company's acquisition that was announced this week, has been posted under the Sweet 16 Tab.
My Fair Value Estimate increases to $72.00/share.
The big jump in my valuation is because I went from 6X CFPS to 7X CFPS. I believe the higher multiple is justified by the company's extensive inventory of low-risk drilling locations and the strong results they are getting on their downspacing pilots. [Which also bullish news for CRZO and WLL.]
Re: Bonanza Creek (BCEI)
Posted: Sat May 31, 2014 10:54 am
by dan_s
May 31: In the last five days First Call's Price Target has increased $3.90/share to $61.95. A move of that size means the analysts really like what they see. My valuation is $72.00/share and I think First Call's price target will approach that when the company reports strong Q2 results that will include an update on their downspacing program.