Stock Ticker

  • Loading stock data...

Kodiak Oil & Gas Corp (USA) (NYSE:KOG): 32 Percent Stock Price Upside Potential

Boston, MA 04/10/2014 (wallstreetpr) – Kodiak Oil & Gas Corp (USA) (NYSE:KOG) is an energy company with market value of $3.58 billion. The company engage in the production activities of oil and natural gas. Its exploration, production and acquisition activities are mostly in the U.S.

Analysts believe the company can achieve significant appreciation in earnings and stock price over the next 12 months. The sustained production growth in the company is responsible for optimism. The company is expected to achieve year-over-year revenue growth of 46 percent.

Improved efficiency is expected to help the company lower production costs. The average well costs are expected to come down further in the coming years, having dropped 13 percent in 2013. In that position, the company should be able to achieve improving earnings and price performance into the future. For that reason, analysts at Bank of America Corp (NYSE:BAC) initiated coverage of the stock with a “buy” recommendation. The analysts also issued 12 month price target of 16 per share on the stock, reflecting about 32 percent upside from the previous closing price.

Growing optimism

Many more analysts are bullish on the company. Analysts at Deutsche Bank increased their price target on the stock to $13, up from $12. Earlier on, KLR Group’s analysts upgraded the stock of Kodiak Oil & Gas Corp (USA) (NYSE:KOG) to a “buy” and issued $16 price target.

On average, the stock is considered a “buy” and it carries consensus price target of $14.29.

Encouraging performance

Kodiak Oil & Gas Corp (USA) (NYSE:KOG) achieved strong revenue growth at 104 percent in the most recent quarter on a year-over-year basis, the revenue growth exceeding the industry average which was 7.9 percent over the same period. Earnings during the quarter increased about 41 percent due to the solid revenue growth. The solid performance helped the stock to jump more than 25 percent over the past year.

Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

Recent Stories

SignUp Now For Our Featured Newsletter