Company Profile: SandRidge is an independent natural gas and oil company, which concentrates on exploration, development and production.
Share Price: $4.33 (Sept. 8)
2010 Stock Performance: -54%
Analyst Consensus: Of the 20 research firms covering SandRidge, half say investors should buy the shares. Another eight analysts have a "hold" rating on the stock, and two recommend that investors dump the shares. The average of 11 recent stock-price targets is $7.27, which is 68% above where the stock currently trades.
Bullish Case: Wunderlich Securities analyst Neal Dingmann reiterated his "buy" rating and $10 price target on SandRidge on Aug. 6 after the company's stock fell as an "overreaction" to production guidance and hedge settlements.
"SandRidge increased its oil-production guidance this year and stated that next year should be at least 30% higher sequentially," Dingmann wrote. "We believe management estimates could be considered conservative. We are also optimistic that differentials begin to improve."