Credit Suisse Reiterates a Buy Rating on Gulfport Energy Corp.

By Jason Carr

In a report released yesterday, Mark Lear from Credit Suisse reiterated a Buy rating on Gulfport Energy Corp. (NASDAQ: GPOR), with a price target of $37. The company’s shares opened today at $23.16.

Lear noted:

“We reiterate our Outperform rating on GPOR while lowering our target price slightly to $37 (from $39). With a fifth and sixth rig on the way, we find GPOR to be an attractive way to gain northeast gas exposure at a significant discount to gas peers. Further aided by a large hedge book, low leverage at the futures strip, and the newly minted public currency given its remaining ~24% stake in TUSK equity, we believe GPOR is well positioned to grow volumes by 25% in 2017 and 47% in 2018 while also approaching cash flow neutrality at our deck. After tweaking the production timing of our Utica dry gas type curves slightly (while keeping EURs the same), our TP goes to $37/sh.”

According to TipRanks.com, Lear is a 5-star analyst with an average return of 14.3% and a 66.7% success rate. Lear covers the Basic Materials sector, focusing on stocks such as Sanchez Energy Corporation, Oil States International, and Whiting Petroleum Corp.

Currently, the analyst consensus on Gulfport Energy Corp. is Strong Buy and the average price target is $36.33, representing a 56.9% upside.

In a report issued on November 2, Canaccord Genuity also reiterated a Buy rating on the stock with a $33 price target.

Based on Gulfport Energy Corp.’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $158 million and GAAP net loss of $157 million. In comparison, last year the company earned revenue of $168 million and had a GAAP net loss of $388 million.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2016, Stuart Maier, the Vice President of Geosciences of GPOR sold 10,000 shares for a total of $333,500.

Gulfport Energy Corp. is an independent oil, natural gas exploration, and production company, which focuses on the exploration, exploitation, acquisition and production of natural gas, natural gas liquids, and crude oil in the United States. It operates through the following geographical segment: West Cote Blanche Bay, Hackberry, Canadian Oil Sands, Thailand, and Niobrara Shale. Its principal producing properties located along the Louisiana Gulf Coast. The company was founded on July 11, 1997 and is headquartered in Oklahoma City, OK.