UBS new $12 price target for SD - 2/26/2010 1:56:13 PM
By Chip Brian, SmarTrend Analytics Team
2/26/2010- UBS analysts are reiterating their "buy"rating for SandRidge Energy (NYSE:SD)and reducing their price target to $12, from $14, after a disappointingend to a difficult year for the company.
Analysts William A. Featherston said, "SD trimmedits 2010 production guidance to the low-end of previous guidance of130-135 Bcfe, while still keeping its capex budget unchanged at $860million. We now forecast 2010 production to grow 24% and 15% in 2012.We've cut our 2010-11 EPS/CFPS to
.75/$1.80 and
.80/$2.20 from$1.05/$1.85 and $1.15/$2.25, respectively. Lower production guidance wasdriven by a reduced per well type curve for the Warwick thrust, whereSD now assumes a 6.6 Bcfe/well (1.96 Bcf of methane) down from an 8.4Bcfe/well (2.5 Bcfe of methane)."
https://www.mysmartrend.com/nw/19308