Callon Petroleum (NYSE:CPE) Stock Rating Reaffirmed by Northland Securities
Northland Securities restated their buy rating on shares of Callon Petroleum (NYSE:CPE) in a research report report published on Tuesday, AnalystRatings.com reports. They currently have a $10.00 price objective on the oil and natural gas company’s stock.
“We agree with the strategic rationale given CPE/CRZO’s discounted valuations for perceived sub-scale operations but the 25% CRZO premium largely eats up accretion with CPE at 4.2x vs CRZO at 4.0x 2020 EV/EBITDA. We think this deal hinges on achievement of the $850MM of identified synergies. Reiterate OP but decrease PT from $11 to $10 with increased risk during integration of CRZO’s multi-basin assets. Overview: CPE is acquiring CRZO in an all-stock transaction valuing CRZO at $3.2 billion. CRZO shareholders will receive 2.05 CPE shares for each CRZO share, implying a takeout price of $13.12 for CRZO (Based on CPE’s closing price last week), representing a 25% premium to Friday’s close. CPE shareholders will own 54% and CRZO shareholders will own 46%, of the pro forma company. The CPE leadership team will stay intact and CRZO will receive three Board seats.”,” Northland Securities’ analyst wrote.
A number of other research analysts have also weighed in on CPE. Zacks Investment Research lowered Guardant Health from a hold rating to a sell rating in a report on Monday, March 18th. Williams Capital decreased their target price on Callon Petroleum from $12.00 to $10.00 and set a buy rating on the stock in a report on Tuesday. SunTrust Banks set a $75.00 target price on Cimarex Energy and gave the stock a hold rating in a report on Tuesday, April 23rd. Imperial Capital reduced their price target on Callon Petroleum from $16.00 to $11.00 and set an in-line rating for the company in a research note on Tuesday. Finally, Jefferies Financial Group set a $189.00 price target on salesforce.com and gave the company a buy rating in a research note on Monday, July 15th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and a consensus target price of $12.33.
Callon Petroleum (NYSE:CPE) last posted its earnings results on Monday, May 6th. The oil and natural gas company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. The business had revenue of $153.05 million for the quarter, compared to analyst estimates of $144.68 million. Callon Petroleum had a return on equity of 7.55% and a net margin of 36.70%. The firm’s revenue was up 20.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.27 EPS. As a group, research analysts predict that Callon Petroleum will post 0.81 EPS for the current fiscal year.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in CPE. Private Capital Group LLC boosted its stake in Callon Petroleum by 135.5% in the 1st quarter. Private Capital Group LLC now owns 4,164 shares of the oil and natural gas company’s stock valued at $31,000 after purchasing an additional 2,396 shares during the period. Cipher Capital LP bought a new stake in shares of Callon Petroleum during the 4th quarter valued at $72,000. Raymond James Financial Services Advisors Inc. bought a new stake in shares of Callon Petroleum during the 4th quarter valued at $73,000. Miller Investment Management LP bought a new stake in shares of Callon Petroleum during the 1st quarter valued at $76,000. Finally, Cornerstone Investment Partners LLC bought a new stake in shares of Callon Petroleum during the 1st quarter valued at $81,000.
About Callon Petroleum
Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas and southeastern New Mexico. As of December 31, 2018, its estimated net proved reserves totaled 238.5 million barrel of oil equivalent, including 180.1 MMBbls of oil and 350.5 Bcf of natural gas.
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