logo
  Join        Login             Stock Quote

CIBC Upgrades Parex Resources To 'Sector Outperformer' In Anticipation Of Positive Exploration Well Results

 May 29, 2012 01:29 PM


(By Balachander) CIBC World Markets Inc. upgraded its rating on shares of Parex Resources Inc. (TSE:PXT) to "Sector Outperformer" from "Sector Performer" on expectations of positive news flow and an incorporation of additional production volumes in its model.

The Canadian oil and natural gas explorer issued an operational update ahead of its AGM on May 23. After two negative releases and two share price corrections on Feb 15 and April 12, CIBC believes that the bad news is out of the stock and it is set to regain some of its losses.

In the May 23 update, the company indicated that two exploration wells have tested at >2,000 Bbl/d on limited tests and another three exploration wells have encountered pay in multiple zones and are scheduled to be perforated and tested in the near term, CIBC noted.

[Related -Old Bank's New Breakout has Big Rally Potential]

The brokerage is of the view that the company is highly dependent on exploration success in 2012 but activity is underway which could add significant production and reserve value over the coming months.

CIBC maintained its price target of $9 and 2012 and 2013 EPS estimates of US$2.30 and US$1.08, respectively.

Parex Resources is engaged in the exploration, development and production in South America and the Caribbean region. It has a portfolio of prospects in the prolific Llanos Basin of Colombia and onshore Trinidad and Tobago.

The stock, which has been trading in the 52-week range of $4.67 to $8.67, added 1.42 percent to trade at $5.73 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.