FBR Capital Analyst Initiates Coverage on QEP Resources Inc (QEP), Issues Market Perform Rating.

By Ben Kriegsman

 

FBR Capital analyst, Chad Mabry, initiates coverage on QEP Resources Inc (NYSE:QEP) and issues a Market Perform rating on the stock.

Mabry explains, “QEP is a mid-cap E&P company with a strong balance sheet and balanced portfolio of quality oil gas assets, which should allow it to successfully navigate a challenging commodity price environment.”

However, the analyst maintains concerns that the company’s latest Permian acquisition came with a hefty premium on the backs of aggressive assumptions that “leave very little margin for error in its development program and growth outlook.”

The analyst issues a price target of $19.00.

According to TipRanks, Chad Mabry is ranked #3,980 of 4,073 analysts. He sustains a success rate of 31% and an average return of -26.7%