RE: FirstEnergy Buy $0.35 Target
Repost:
RE: "Valuation and Recommendation
? We have reflected the potential resources downgrade
and a revised drilling plan in our valuation and have
subsequently reduced our target price to C
.35/share
(C$1.00/share previously). Given the disappointing
drilling results to date across the Company’s acreage in Portugal, we anticipate that the Company will
be conservative in its spending while it brings in JV
partners and hence could potentially drill one instead
of two additional wells in the near term. We maintain
our Speculative Buy recommendation given that the
potential entrance of well capitalized JV partners will
ease the capital expenditure burden and potentially
rerate the story"