Jefferies Cuts Price Targets on Whiting Petroleum (WLL), Shares are Cheap

Jefferies is reaffirming its Buy rating on shares of Whiting Petroleum (NYSE: WLL) while lowering its price target from $72 to $70.

An analyst at Jefferies comments, "As we argued in our Oct 21 note, Street has focused too heavily on Lewis + Clark's lower initial production rates. But these wells have flatter initial declines and production is similar to higher IP Bakken wells after few months. Couple that with WLL’s lower well costs, these wells have economics on par with some of the more attractive parts of the Williston."

The firm is raising its FY11 and FY12 EPS estimates from $3.75 and $4.15 to $3.80 and $4.30. For Q4 2011, Jefferies is currently forecasting EPS of $0.98.

The firm notes that shares are currently trading below its p1 value of $54.

For more ratings news on Whiting Petroleum click here and for the rating history of Whiting Petroleum click here.

Shares of Whiting Petroleum closed at $47.88 yesterday.

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