NEW YORK (TheStreet) -- Ultra Petroleum Corp (UPL) was upgraded to "outperform" from "market perform" by Raymond James (RJF) on Monday. The firm set a price target of $36 for the company's shares.
The firm pointed to increased production growth and decreased leverage as reasons for the upgrade.
"Our upgrade is predicated on three key points: we see tighter gas storage paving the way for improvement in 2015 gas prices; we expect Ultra production growth to trend closer to 15% than current guidance of 5-9%; we expect leverage to fall from 3.6x at year end 2013 (post-Uinta Basin acquisition) to 2.5x in the next 12-18 months." Raymond James said.
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Separately, TheStreet Ratings team rates ULTRA PETROLEUM CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ULTRA PETROLEUM CORP (UPL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."