| Morgan Stanley: 'Oil On Sale,' We're Upgrading Whiting Petroleum | |
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In a report published Monday, analysts at Morgan Stanley upgraded Whiting Petroleum Corp (NYSE: WLL) to Overweight. The price target was set to $48. The company is expected to outperform, following a rebound in growth as well as reduction in leverage due to divestitures.
The stock is best suited for investors looking for exposure to oil via a company that can withstand low oil prices for the next 2-3 years. The current negative sentiment surrounding the stock has led to discounted valuation, which offers an attractive point of entry for investors.
The analysts expect the discount to peers to narrow with a decline in leverage and rebound in growth, in line with Whiting Petroleum's high-quality peers. The company's divestiture program is expected to reduce leverage to 2.2x by year-end 2016.
According to Jefferies, "[W]e expect slower 2016 growth for WLL at 3 percent (post asset sales) vs. peers at 18 percent, but on strip pricing WLL will be FCF neutral while its peers are spending 142 percent of cash flow."
"While we think pullback in crude prices is plausible in the next few months, the macro environment appears more supportive over the medium term. We expect most longer-time horizon investors to focus on the big picture trend of reduced upstream investment and slowing US oil production growth," the analysts added.
Latest Ratings for WLL
Date | Firm | Action | From | To |
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May 2015 | Morgan Stanley | Upgrades | Equal-weight | Outperform | Apr 2015 | SunTrust Robinson Humphrey | Upgrades | Neutral | Buy | Apr 2015 | Global Hunter | Upgrades | Neutral | Accumulate |
View More Analyst Ratings for WLL
View the Latest Analyst Ratings
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Whiting Petroleum Corporation
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CODE : WLL |
ISIN : US9663871021 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Whiting Petroleum est une société de production minière de pétrole basée aux Etats-Unis D'Amerique. Whiting Petroleum est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 6,2 milliards US$ (5,4 milliards €). La valeur de son action a atteint son plus haut niveau récent le 22 août 2008 à 99,26 US$, et son plus bas niveau récent le 03 avril 2020 à 0,25 US$. Whiting Petroleum possède 90 927 193 actions en circulation. |