NEW YORK (TheStreet) -- Kodiak Oil & Gas (KOG) had coverage initiated on its shares with a "buy" rating by Bank of America/Merrill Lynch (BAC). The firm also set a price target of $16 for the company.
Kodiak Oil & Gas is up 1.9% to $12.66 in early trading Friday.
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BofA Merrill sees a continuing trend of increasing efficiency leading to decreasing production costs as the reason for the rating.
"We look for continued production growth momentum into 2014 with expected 46% yoy growth. At the same time, efficiencies have improved with average well costs down 13% in 2013, with room to decrease," the note said.
Separately, TheStreet Ratings team rates KODIAK OIL & GAS CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KODIAK OIL & GAS CORP (KOG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."