To conclude this series, let’s see what sort of targets Wall Street analysts have for Denbury Resources (DNR).
At a broader level, ~25% of analysts rate Denbury Resources a buy, ~70% rate it a hold, and ~5% rate it a sell. That’s not bad for an upstream energy company, when crude oil prices have more than halved over the last seven months.
Coming to individual recommendations, the highest target price for Denbury comes from KLR Group, with a target of $13 per share for the company. Denbury currently trades near $9, implying a ~45% return. Next, KeyBanc Capital Markets also has a buy recommendation on the company, with a target of $11 per share, implying returns in excess of 22%.
The most pessimistic $5 target comes from Barclays Plc (BCS). Though the banking group rates Denbury as “equalweight”—meaning the company may be held in a proportion that’s in line with its model portfolio)—this would still mean a negative 45% return for investors, if the target price were to come to bear.
Although it is small, Denbury Resources finds itself a place among several ETFs. It is ~0.2% of the Vanguard Energy ETF (VDE) and ~0.4% of the Energy Select Sector SPDR Fund (XLE). These energy-focused ETFs are dominated by large integrated energy companies like ExxonMobil (XOM) and Chevron Corp. (CVX).
What’s more interesting is that Denbury also finds a place in the broad market SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark S&P500 index.
For more company analyses, check out Market Realist’s Energy and Power page. Also, keep an eye out for our follow-up series on Denbury that will analyze the company’s historical financial statements in detail to get an understanding of its financial health.