NEW YORK (TheStreet) -- SandRidge Energy (SD) shares are up 1.1% to $5.30 on Tuesday after being upgraded to "buy" from "hold" by analysts at Stifel (SF) , who set a price target of $6.75.
Analysts at the firm said that the upgraded outlook was a valuation call on the independent oil and natural gas company.
The firms price target represents a 27% upside from the stock's current trading price. SandRidge shares are trading on heavy volume with 1.9 million shares moving in early market trading so far today.
TheStreet Ratings team rates SANDRIDGE ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANDRIDGE ENERGY INC (SD) 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 expanding profit margins, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk."