What Are Analysts Saying about Energen after Its 1Q16 Earnings?
Wall Street analysts’ ratings for Energen
Currently, ~52% of Wall Street analysts rate Energen (EGN) as a “buy” and ~44% of analysts rate it as a “hold.” Around 4% rate the stock a “sell.” The median price target from these recommendations is $43.78, which is ~13% higher than its May 9, 2016, closing price of $38.85.
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Based on the median price targets of recommendations from Wall Street analysts, upstream companies QEP Resources (QEP), Parsley Energy (PE), and Carrizo Oil & Gas (CRZO) have potential upsides of ~24%, ~22%, and ~23%, respectively, from their May 9, 2016, closing prices.
Carrizo Oil & Gas has the advantage of higher operating margins per boe compared to its peers. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies. The Vanguard Energy ETF (VDE) invests in the broader energy market.
Energen’s individual recommendations
As shown in the above table, the most recent recommendation of “sector perform” comes from RBC Capital Markets, which was issued on May 6, 2016. RBC Capital Markets assigned Energen the target price of $43.00, which is ~11% higher than its May 9, 2016, closing price of $38.85. RBC Capital Markets expects the company to reach its target price within 12 months of the date of recommendation.
Energen’s lowest target price
The lowest target price for Energen comes from Morgan Stanley (MS). It assigned Energen the target price of $34.00, which is ~12% lower than the May 9 closing price of $38.85.
Morgan Stanley issued its Energen recommendation on May 5, 2016, and expects the company to reach the target price within the 12 months of the date of recommendation.