Analyst Actions: Hess PT Raised $9 at Credit Suisse; Shares Slightly Lower in Afternoon Trade


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Credit Suisse analysts have revised their earnings estimates for Hess Corp. ( HES ), and raised the price target on the stock to $83 from $74 a share.

"The 'final phase' of the transformation which HES has announced looks sufficient to de-risk any balance sheet concerns while focusing the company on longer lived international assets and NAM shale upside," said Credit Suisse. "HES shares look slightly undervalued on adjusted proforma 2012 EV/CF multiples with 5-8% production growth through 2017 and a $5/bbl improvement in margins from 2012-2017."

Focus on Bakken Upside: "With HES well costs now at a value creating $9m per well (and potentially lower over time), investors should focus on option value from Bakken and Three Forks downspacing where recent industry tests look encouraging. Our $94/sh NAV rises to $101/sh in a downspacing success case."

The firm has revised its 2013, 2014 and 2015 EPS estimates to $6.89, $6.10 and $4.35 from $6.88, $7.54 and $5.62 respectively.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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