Thursday, October 14, 2010

Northern (Amex:NOG) Stacked Against Brigham (Nasdaq:BEXP), Kodiak (Amex:KOG) and Oasis (NYSE:OAS)

With the liquidity and growth potential of Northern Oil and Gas (Amex:NOG), Canaccord Genuity says they're trading at an unjustifiable 10 percent discount against peers Brigham Exploration (Nasdaq:BEXP), Kodiak Oil & Gas (NYSE Amex:KOG) and Oasis Petroleum (NYSE:OAS).

Also liking the plan of Northern, Canaccord said, "We are reiterating our rating with greater conviction based on Northern Oil’s accelerated development plan and its proven ability to organically acquire acreage at accretive levels. We continue to believe Northern trades at too steep of a discount to its peers for a company with its liquidity and relative growth potential. At present, NOG trades at a 10% discount (EV/EBITDAX) to its closest peers (Brigham Exploration (Nasdaq:BEXP), Kodiak Oil & Gas (NYSE Amex:KOG), Oasis Petroleum (NYSE:OAS)."

All the companies closed in positive territory Wednesday.

Northern closed at $18.72, gaining $0.02, or 0.11 percent. Canaccord, which maintains a "Buy" on the company, has a price target of $24 on them.

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