The Denver-based energy company develops, acquires and explores for oil and natural gas resources.
The company is gaining operational momentum driven by its extended-reach lateral (XRL) drilling program and the firm sees good long-term value in Bill Barrett's shares.
"The stock however, which has more than doubled over the past month, has surpassed our NAV-driven price target, resulting in a downgrade to HOLD from Buy," Canaccord Genuity said in a note.
Based on the uncertainty of an oil price recovery during 2016, the company made the decision to curtail drilling activity to preserve capital and recently released the sole rig it was operating, the firm added.
Shares of Bill Barrett are increasing by 2.58% to $6.37 at the start of trading on Wednesday as oil prices rise.
Crude oil (WTI) is advancing by 2.93% to $39.40 per barrel and Brent crude is up by 2.58% to $40.15 per barrel this morning.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BBG