Will This Upgrade Help Bonanza Creek Energy (BCEI) Stock On Tuesday?

NEW YORK (TheStreet) --Bonanza Creek Energy Inc. (BCEI) was upgraded to "buy" from "hold" at Topeka Capital on Tuesday.

The firm said it upgraded the oil and natural gas company and raised its price target on the stock to $68 from $50 as the firm thinks the Wattenberg Field acquisition will add to earnings.

On May 22, Bonanza Creek announced its agreement to pay $175.5 million in cash and issue up to 1.1 million shares of stock to purchase assets, from an unidentified privately held company, that consist of 86,400 acres and a net production of 700 BOE per day, according to Reuters.

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Separately, TheStreet Ratings team rates BONANZA CREEK ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BONANZA CREEK ENERGY INC (BCEI) a BUY. This is driven by several positive factors, 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 robust revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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