RBC ups cash flow estimates for LNVNew 2013 cash flow: $1.39 per share
Old 2013 cash flow: $1.21
(15% increase from old)
New 2014 cash flow: $1.48 per share
Old 2014 cash flow: $1.33
15% increase from old)
The above increases are the highest in their Junior & Intermediate E&Ps coverage universe, the average increase for 2013 is 5% and 3% for 2014 for the other names.
New NAV: $11.52
Old NAV: $11.34
Price target unchanged: $6
It is strange why their price target for LNV is only at 0.5 NAV, this would be the second lowest in their coverage universe, the only other name lower is LPR at 0.3 NAV, which is a company at the verge of bankruptcy. If we were to apply a price target of 1.1 NAV which is the same as TBE, a company that has disappointed repeatedly on production, we would get a price of $12.67! per share.
Certainly a price target at $8 or 0.7 of NAV is not a strech, at $8 we would have a 7.5% yield and trade at 5.4 EV/CF 2014.
Here is the full report, however LNV is only mentioned on a table on Page 31
st:
https://rbcnew.bluematrix.com/docs/pdf/97d4cb1a-666f-4b6c-84aa-abe840f9f72d.pdf?
Regards,
Nawar