NEW YORK (TheStreet) -- Denbury Resources (DNR) shares closed intraday trading down 0.78% to $6.35, and continue to fall in after-hours trading on Monday, down 0.16% to $6.34, after analysts at JPMorgan cut the company's price target to $7 from $12 before the opening bell today.
The firm reiterated the company's "outperform" rating despite the lowered price target as the firm believes that the company will experience solid production growth in the fourth quarter of the next three years.
"However, the periods 4Q14 to 4Q15 and 4Q15 to 4Q16 still show fairly healthy production growth. The lower 2015 and 2016 production growth could help balance the oil market, especially if other market factors (OPEC, other producers, demand growth) help as well. However, if the slower U.S. oil production growth is not enough to balance the oil market and other factors do not help, the market might require a still lower price to further drive U.S. oil production lower," said the firm.
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TheStreet Ratings team rates DENBURY RESOURCES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DENBURY RESOURCES INC (DNR) 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 increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."