NEW YORK (TheStreet) -- Canaccord increased its price target on Cimarex Energy (XEC) to $170 and set a "buy" rating. The firm said the move reflects the company's recently announced Kansas divestment and completion of the Cana acquisiton.
The stock closed at $143.07 on Tuesday.
Separately, TheStreet Ratings team rates CIMAREX ENERGY CO as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIMAREX ENERGY CO (XEC) 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 40.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 52.88% and other important driving factors, this stock has surged by 111.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- CIMAREX ENERGY CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CIMAREX ENERGY CO increased its bottom line by earning $6.49 versus $4.08 in the prior year. This year, the market expects an improvement in earnings ($6.77 versus $6.49).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 54.0% when compared to the same quarter one year prior, rising from $89.93 million to $138.46 million.
- The gross profit margin for CIMAREX ENERGY CO is currently very high, coming in at 72.38%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.10% significantly outperformed against the industry average.
- You can view the full analysis from the report here: XEC Ratings Report