| Stifel: Financial Risk Is High For Goodrich Petroleum | |
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Stifel released an update on Goodrich Petroleum Corporation (NYSE: GDP) and downgraded the company from Hold to Sell based on a decrease in revenue projections and lower 2016 oil price forecasts. Goodrich has a price target of $0.20.
Analysts Michael Scialla and Kenneth Beyer wrote, "While the stock has been decimated over the past 12 months and management continues to reduce debt obligations via asset sales, debt exchanges, and conversions, the financial risk does not warrant a Hold rating in our view."
One of the issues with Goodrich is that many of its drilling projects require significantly higher oil prices in order to be profitable. Stifel believes that oil would have to approach $60 per barrel for projects such as the company's TMS drilling program to be worth the investment. As oil has been plagued by oversupply, the firm's prospects don't look positive in the near term until there is a reversal in oil prices.
Shares of Goodrich Petroleum on Monday closed at $0.40, and recently traded at $0.37, down 6 percent.
Latest Ratings for GDP
Date | Firm | Action | From | To |
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Dec 2015 | Stifel Nicolaus | Downgrades | Hold | Sell | Nov 2015 | FBR Capital | Downgrades | Outperform | Market Perform | Nov 2015 | FBR Capital | Downgrades | Outperform | Market Perform |
View More Analyst Ratings for GDP
View the Latest Analyst Ratings
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Goodrich Petroleum Corporation
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CODE : GDP |
ISIN : US3824104059 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Goodrich Petroleum est une société d’exploration minière de pétrole basée aux Etats-Unis D'Amerique. |