GPOR
Posted: Sun Dec 27, 2015 1:45 pm
Jefferies, a global investment banking firm owned by Leucadia National, updated its "Franchise Picks List," to include 17 U.S.-based stocks.
Gulfport Energy (GPOR) is on the list.
Jefferies Price Target: $36
Jefferies Said: Gulfport's recent underperformance on a lower growth outlook is overdone. The company trades at a similar multiple to peers yet grows faster and maintains a healthier balance sheet. Management indicated 2016 growth is set to be strong as 100 MMcf/d of curtailed gas comes back online with 15 gross (10 net) Utica wells. [Analyst Dan Braziller] models 20+% growth in 2017 on a ~600 MM budget and estimates the stock trades at 10.6x 2016 and 9.1x 2017 EBITDA, at strip; the peer average is over 10 x in 2016 and 2017. Finally, we remain bullish on natural gas and note that US production peaked in the spring of '15, associated gas production should continue to contract, and LNG projects in early '16, and ramping in '17, should help bolster demand.
My valuation is $48.60/share, compared to First Call's Price Target of $40.10.
Gulfport Energy (GPOR) is on the list.
Jefferies Price Target: $36
Jefferies Said: Gulfport's recent underperformance on a lower growth outlook is overdone. The company trades at a similar multiple to peers yet grows faster and maintains a healthier balance sheet. Management indicated 2016 growth is set to be strong as 100 MMcf/d of curtailed gas comes back online with 15 gross (10 net) Utica wells. [Analyst Dan Braziller] models 20+% growth in 2017 on a ~600 MM budget and estimates the stock trades at 10.6x 2016 and 9.1x 2017 EBITDA, at strip; the peer average is over 10 x in 2016 and 2017. Finally, we remain bullish on natural gas and note that US production peaked in the spring of '15, associated gas production should continue to contract, and LNG projects in early '16, and ramping in '17, should help bolster demand.
My valuation is $48.60/share, compared to First Call's Price Target of $40.10.