NEW YORK (TheStreet) -- Stone Energy
(SGY) shares had coverage initiated with a "buy" rating while setting a price target of $56 by analysts at Brean Capital.
The price target represents a 29% increase from Stone Energy's $43.33 closing price yesterday.
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Separately, TheStreet Ratings team rates STONE ENERGY CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate STONE ENERGY CORP (SGY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, SGY's share price has jumped by 88.47%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for STONE ENERGY CORP is rather high; currently it is at 69.47%. Regardless of SGY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SGY's net profit margin of 11.62% compares favorably to the industry average.
- SGY, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.05 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SGY's quick ratio is somewhat strong at 1.07, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: SGY Ratings Report
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