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NEW YORK (TheStreet) -- Barclays increased its price target on PDC Energy (PDCE) stock to $80 from $78 in a note released earlier today. 

The higher price target reflects the Denver-based oil and gas producer's announcement Tuesday that it will purchase two privately-held companies in the Texas counties Reeves and Culberson.

PDC Energy's entrance into the Delaware Basin adds a second resource play that might ultimately surpass its core Wattenberg asset in resources and returns, Barclays noted.

"We believe the acquisition removes the uncertainty related to the company's plans of expanding to another basin while enhancing its ability to deliver peer-leading growth for many years," the firm added.

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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

PDC Energy's strengths such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance are countered by weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: PDCE

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 article's author.

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