Raymond James Revises Price Target of Northern Oil & Gas to $48, Maintains Strong Buy Rating

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Northern Oil & Gas ($NYSE:NOG) is a leading independent energy company based in Minnetonka, Minnesota. The company operates in the exploration and production of crude oil and natural gas in the Williston Basin, located in North Dakota and Montana. According to analysts surveyed by Capital IQ, Northern Oil & Gas has been given an average rating of buy, with price targets ranging from $39 to $58. This move comes as part of the firm’s quarterly review of its coverage universe, taking into account various macroeconomic and industry fundamentals.

Despite the downward revision, Raymond James remains optimistic about Northern Oil & Gas’ potential, citing the company’s strong balance sheet and strong production growth potential. The firm also noted that the company is well-positioned to benefit from the improving infrastructure and transport capacity in the Williston Basin.

Share Price

The stock opened at $33.0 and closed at the same price, down 0.2% from the previous closing price of 33.1. This comes after the company’s solid performance over the past few months and its bright future outlook. Jenkins cited Northern Oil & Gas’s strong asset base and recent investments in the Bakken and Three Forks formations as key drivers of the company’s growth. He believes that the company’s focus on cost discipline and operational efficiencies will continue to pay off in the long-term.

He also noted that the company has been actively deploying capital to improve acreage position in core areas, which has helped to further their competitive advantage. Overall, Raymond James is optimistic about Northern Oil & Gas’s long-term prospects and believes that the stock is well-positioned to benefit from future growth opportunities. Jenkins’ new price target of $48 reflects his confidence in the company’s success. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NOG. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NOG. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NOG. More…

Key Ratios Snapshot

Some of the financial key ratios for NOG are shown below. More…

Analysis

GoodWhale’s analysis of NORTHERN OIL & GAS’s financials reveals that the company has an intermediate health score of 6/10 with regard to its cashflows and debt. This suggests that the company is likely to safely ride out any crisis without the risk of bankruptcy. Additionally, using our Star Chart, we classify NORTHERN OIL & GAS as a “gorilla” – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its strong performance in growth, profitability, and medium performance in assets and dividends, NORTHERN OIL & GAS may be interesting to a variety of investors. Investors looking for a stable source of income may find the dividend attractive, while those looking for a strong growth story may benefit from the company’s competitive advantage. In either case, NORTHERN OIL & GAS appears to be a strong option for investors looking for a solid, well-performing company. More…

Peers

The company competes with Carbon Energy Corp, Earthstone Energy Inc, and Battalion Oil Corp in the highly competitive oil and gas industry.

– Carbon Energy Corp ($OTCPK:CRBO)

Carbon Energy Corp is a publicly-traded, integrated oil and gas exploration and production company headquartered in Denver, Colorado. They are focused on developing cleaner energy solutions from oil and gas resources located in the United States, Canada, and Argentina. The company has a market capitalization of 20.76k as of 2023, which represents a decrease from the previous year. Its Return on Equity (ROE) is also negative, coming in at -36.04%. This suggests that the company is not generating enough revenues to cover its costs and expenses. The company is working to improve its ROE performance by investing in more efficient and sustainable technologies and operations.

– Earthstone Energy Inc ($NYSE:ESTE)

Earthstone Energy Inc is an exploration and production company based in Texas that focuses on the development and exploitation of oil and natural gas reserves. With a market capitalisation of 1.24 billion USD as of 2023, the company has proven its resilience despite of the turbulence in the energy sector. The company has also achieved a very impressive Return on Equity of 33.04%, which is significantly higher than the industry average of 8.88%. This is a testament to the sound management employed by Earthstone Energy Inc, which has enabled it to outperform its competitors in terms of profitability.

– Battalion Oil Corp ($NYSEAM:BATL)

Battalion Oil Corp is an independent oil and natural gas company headquartered in Houston, Texas. It mainly focuses on developing and exploiting oil and natural gas properties in the Permian Basin, Mid-Continent, and Appalachian regions. Battalion Oil Corp has a market cap of 101.34M as of 2023, indicating that it is a highly valued company in the sector. Its Return on Equity (ROE) of 112.49% demonstrates that the firm is efficiently using its resources to generate profits and improve shareholder value, making it an attractive investment opportunity for investors seeking to capitalize on the favorable energy market conditions.

Summary

Northern Oil & Gas has seen recent investments analysis from Raymond James, who have adjusted the price target to $48 and kept a strong buy rating. Capital IQ has an average rating of buy on NOG and analysts’ price targets range from $39 to $58. Investors are likely to remain bullish on the stock and continue buying NOG as analysts keep their outlook on the company positive.