UPDATE: Stifel Nicolaus Upgrades Penn Virginia Corporation to Buy on Attractive Entry Point
1:06p ET November 6, 2012 (Benzinga)
Stifel Nicolaus raised its rating on Penn Virginia Corporation (NYSE: PVA) from Hold to Buy and established a $6.50 price target.
Stifel Nicolaus noted, "While PVA is not one of our highest quality buys, we believe the stock is attractive for investors looking for small cap energy names that should be turning a corner. … [T]he initial 2013 guidance, which was released with 3Q results, has reduced the guidance risk that was present in the name, given that quarterly production had been declining sequentially with the two rig program.With a more attractive entry point, better positioned balance sheet, and initial 2013 guidance reducing 2013 CF estimate risk, we think it makes sense to be long the stock again. Production should begin growing sequentially in 1Q13, as the impact of the third rig is felt, and we believe that this growth will be the key driver for the stock price."
Penn Virginia Corporation closed at $4.62 on Monday.