KeyBanc has initiated coverage on SandRidge Energy (NYSE:SD), starting them off with a "Hold."
Valuation of the Hold on Sandridge was one of the major factors, as they've gained over 27 percent in the last month.
"Over the course of about nine months, SandRidge Energy aggressively and successfully transitioned from a natural gas focused company to an oil focused company with considerable natural gas upside potential ... With 75% of 2H10 and over 95% of 2011 capital spending expected to be dedicated toward SD's new oil focused assets, we believe execution in these new assets will be key. While we are impressed by management's speed and success in repositioning the Company, we are taking a bit more of a wait and see approach as the Company executes on its new oil properties. Furthermore, SD's share price is up 27.7% over the last month, vs. peers up 6.8% and the S&P 500 up 2.9%," KeyBanc said.
SandRidge closed down at $5.70 Wednesday, dropping $0.17, or 2.90 percent.
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