Analyst Action: These Resource Stocks Are On Watch!
It’s Friday, and that means it’s time for another edition of Analyst Action.
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 many times a notable bullish change in a respected analyst’s outlook can be the start of great things for a company’s share price.
Of course, their ratings changes aren’t always positive…
When an analyst applies a big downgrade, a company’s share price 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.
Here are this week’s natural resource company ratings changes catching my eye…
Penn Virginia (PVA)- The Eagle Ford Shale producer was upgraded by Stifel Nicolaus to a “Buy” with a $23 price target. With PVA shares currently trading at $15, the upgrade represents 53% upside potential.
RSP Permian (RSPP)- Mizuho started the oil and gas producer with a “Buy” rating and a $33 price target.
Athlon Energy (ATHL)-Mizuho also initiated this Permian Basin producer with a “Buy” rating and a $52 price target.
PDCE Energy (PDCE)- Brean Capital reiterated their “Buy” rating on the Wattenburg/Utica/Marcellus producer. What’s more, Brean slapped a $75 price target on PDCE, which represents 13% of upside potential.
Apache (APA)- This international producer had their price target upped to $118 from $103 at Argus Capital. With a current share price of $96, this represents 23% upside potential.
Occidental Petroleum (OXY)- Another international oil and gas explorer was upgraded to “Buy” at Jeffries. Analysts see OXY shares trading at $114- up 11% from current prices.
Anadarko Petroleum (APC)- Deutsche Bank reiterated their “Buy” rating and $126 price target. Investors are also hearing rumors of an imminent sale of APC to Exxon Mobil (XOM).
Whiting Petroleum (WLL)- Howard Weil raised their price target on WLL to $98. This represents 27% upside potential.
Triangle Petroleum (TPLM)- The Bakken producer had their price target upped to $14 at Wunderlich. With a current price in the $10 range, this represents nearly 40% of upside potential.
There you have it…
As you can see, analysts made some big ratings changes this week. The share prices of many of the companies above are already reacting to the news.
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 risk control measures in your trades.
If you’d like me to do the work for you, check out the Options Profit Pipeline. This one-of-a-kind options service focuses on commodities and the companies producing them.
A recently initiated put trade in Cliffs Resources (CLF) is reaching a peak gain of 260% this week!
Until Next Time,
Justin Bennett
Category: Natural Resource Stocks
