According To Analysts, These Are The Oil And Gas Stock To Watch!

| December 15, 2014 | 0 Comments

Analyst ActionIt’s Monday, and that means it’s time for a look at compelling analyst upgrades and downgrades.

In case you’re unaware, analysts at the biggest banks and investment firms on Wall Street provide research on a multitude of natural resource companies. It’s not always the case, but most times a notable bullish change in a respected analyst’s outlook can have a significant influence on a company’s share price.

Of course, their ratings changes aren’t always positive…

When an analyst applies a big downgrade, shares can lose ground quickly.

After all, it’s not a great idea to be fully invested in a company that’s falling out of favor with Wall Street. At the very least, a downgrade can slow buying activity, which opens the door to lower prices.

Either way, it’s important to keep an eye on the analyst activity. Doing so can give you a substantial leg up on the market.

Of The Analyst Calls Made Last Week, I Believe These Are The Oil and Gas Stocks To Watch… 

Gulfport Energy (GPOR)- Stifel Nicolaus initiated the US based fracker with a “buy” and $50 price target.   What’s more, Deutsche Bank reiterated their GPOR “buy” rating while reducing their price target to $60. With shares trading in the $38 area, these targets represent profit potential of at least 30%.

PDC Energy (PDCE)- After plummeting to $30/share over the past six months, analysts at Credit Suisse and Brean Capital still believe the Utica/Marcellus producer should be trading at $58 or higher. The two firms have “buy” and “outperform” ratings on PDCE.

SM Energy (SM)- Analysts at BMO Capital Markets and Macquarie upgraded the US shale producer to “outperform”.   Macquarie believes SM should be trading at $70, which is a 130% premium to current prices.

Carrizo Oil and Gas (CRZO)- The US shale producer, with exposure to the Niobrara, Eagle Ford, Marcellus, and Utica, was initiated with “buy” and $58 price target at Canaccord Genuity. With shares currently crossing the tape at $33, Canaccord’s price target represents 75% upside profit potential.

Oasis Petroleum (OAS)- No doubt about it, this Bakken producer has fallen out of bed this year.   Shares are down 78% from the 52-week high set in mid-July. However, analysts at Credit Agricole and Canaccord Genuity see the downturn as an opportunity to “buy”. Canaccord has a $29 price target on the OAS, which is a 140% premium to current prices.

Viper Energy Partners (VNOM)- This Permian Basin operator was initiated with a “buy” rating at Miller Tabak and Stifel Nicolaus.   The respected firms have price targets of $21 and $23 respectively, which is at least 40% higher than current prices. It’s important to note, VNOM pays a 6% dividend.

There you have it…

What you see above are the most captivating, and potentially profitable, ratings changes I came across over the past few days. Shares prices may already be reacting to the ratings and price target adjustments.

Now remember…

Just because an analyst has a bullish view on a company doesn’t mean you should dump all your money into the company’s stock. Do your own due diligence and always use correct position sizing and risk control measures in your trades.

Until Next Time,

Justin Bennett


BIO: Justin Bennett is the head commodity research analyst at With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them. Sign up for our free reports and commodity newsletter at

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Category: Natural Resource Stocks

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.